Time Warner Inc, the world's largest media company, said third-quarter profit fell 1.7 percent and lowered its full-year profit forecast on costs to restructure.
Net income fell to $1.07 billion from $1.09 billion a year earlier, New York-based Time Warner said yesterday in a statement distributed by Business Wire.
Excluding some items, profit of 31 cents a share beat the 27-cent average of 18 analysts' estimates compiled by Bloomberg.
Sales were little changed at $11.7 billion, missing the $11.9 billion average of 14 analysts' estimates.
Revenue increased at Time Warner Cable Inc, the second-largest US cable-television provider, and the TV networks unit housing HBO, TBS and CNN. The AOL Internet unit and Time Inc. publishing units were hurt by an industry-wide advertising slump.
Cable networks
At the cable-TV networks, higher ratings helped shield Time Warner from the ad drop more than broadcasters, said David Joyce, an analyst at Miller Tabak & Co in New York, before the results. "Their ratings are up, so their advertising's been up."
Joyce, who recommends buying the shares, expected third-quarter revenue of $11.96 billion, on TV network and cable sales growth.
Time Warner rose 85 cents, or 8.5 percent, to $10.83 on Tuesday in New York Stock Exchange composite trading.
The shares have lost 34 percent of their value this year.
(Agencies/China Daily November 6, 2008)
