Time Warner Inc's fourth-quarter profit and revenue beat Wall Street expectations, thanks to a 21 percent jump in cable advertising sales from programs like Conan O'Brien's late night talk show. The company, whose shares rose 3 percent in premarket trading on Wednesday, also raised its quarterly dividend by 11 percent and increased its stock repurchase buyback plan to $5 billion.
Fourth-quarter earnings adjusted for discontinued operations of AOL were 67 cents per share beating analysts average estimate of 62 cents per share, according to Thomson Still, total fourth quarter revenue rose 8 percent to $7.8 billion, besting analysts' average forecast of $7.47 billion, according to Thomson Reuters I/B/E/S.
At its cable networks division, total revenue rose 14 percent to $3.3 billion, on strong subscription fees and ad sales. Time Warner also expects 2011 adjusted earnings per share to be up in the "low teens" percentage growth range off a 2010 adjusted EPS base of $2.41, ahead of what Wall Street is expecting. Analysts on average forecast 2011 earnings growth at 9 percent. Net income at the media company was $769 million, or 68 cents per share, compared to $631 million, or 53 cents per share during the same period last year. At its filmed entertainment division, which includes Warner Bros, revenue rose 10 percent to $3.6 billion in the fourth quarter due mainly to higher TV license fees.
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