Time Warner Inc. reported Wednesday a sharply higher third-quarter net profit as revenue increased about 7% on improved results turned in by its cable systems and television networks, while AOL revenue declined due to the ongoing loss of dialup access customers.
The world's largest media company, Time Warner said it had net income of $2.32 billion, or 57 cents a share, up from $853 million, or 18 cents, earned in the year-ago third quarter.
Earnings from continuing operations were 34 cents a share in the latest quarter but on an adjusted basis amounted to 19 cents a share, New York-based Time Warner said. Quarterly revenue rose 7%, reaching $10.91 billion. Standing out was Time Warner Cable, which generated revenue growth of 44% to $3.2 billion.
Operating income climbed to nearly $1.67 billion from the prior year's $1.65 billion.
Analysts, on average, had been looking for earnings of 20 cents a share on revenue of $11.07 billion, according to estimates compiled by Thomson First Call. "Time Warner continues to build momentum and deliver value for our shareholders," said Chairman and CEO Dick Parsons in a statement.
Also Wednesday, the company affirmed its business outlook for all of 2006, saying it continues to project growth at a rate in the "low double-digits" for operating income before depreciation and amortization on an adjusted basis.
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