Big Writedown Equals Big Q4 Loss At Time Warner
February 4, 2009 at 7:21 AM (PT)
A big writedown of intangible assets, AOL, and TIME INC. led TIME WARNER to a net loss of $16 billion in the fourth quarter ($4.47/share), down from 2007's $1.03 billion profit (28 cents/share). Excluding the charge, the company would have shown net income of 23 cents/share missing analysts' projections of 17 cents/share. Revenues fell 3% to $12.31 billion, short of WALL STREET projections of $12.31 billion.
AOL ad revenue dropped 18%, following third quarter's 17% slip. Overall revenue slipped from $1.25 billion to $968 million.
THe company is issuing guidance of income to be flat for full year 2009. The projection excludes TIME WARNER CABLE, which is being spun off this quarter, but includes $250 million in restructuring charges.