TW Swings to Profit

Time Warner on Wednesday said it swung to a fourth-quarter profit that exceeded Wall Street forecasts on better film and TV unit results.

The entertainment giant also raised its quarterly dividend 13.3 percent to 21.25 cents per share and said its board has expanded a stock buyback authority from $1 billion to $3 billion.

The conglomerate posted a profit of $627 million, compared with a loss of $16 billion in the year-ago period driven by big impairment charges.

Revenue rose 2 percent to $7.3 billion.

Fourth-quarter adjusted operating income before depreciation and amortization rose 35 percent to $1.5 billion driven by growth at its film and TV divisions.

For the full year 2009, TW cited record film and TV profits. For the year, revenue declined 3 percent to $25.8 billion with adjusted OIBDA up 9 percent to $5.7 billion.

For 2010, the conglomerate forecast growth in adjusted profit per share from continuing operations in the mid-teen percentage range over the $1.83 reported for 2009.

In the fourth quarter, TV unit OIBDA rose 29 percent on a 4 percent revenue gain. Film OIBDA jumped 41 percent as revenue rose 7 percent thanks to film releases such as The Blind Side and Sherlock Holmes, as well as DVD releases such as The Hangover and the sixth installment of Harry Potter.

Full 2009 film results saw adjusted OIBDA up 21 percent despite a 3 percent revenue decline.

See also:

“News Corp. Boosts Revenue 10%”

“Comcast Doubles Q4 Profit”