Time Warner despite soft television/movie business managed to post a decent quarter thanks to broadband and other digital TV technologies.
Time Warner, which also disclosed that it is among the biggest investors in Web search leader Google, said fourth-quarter net profit rose to $1.13 billion, or 24 cents a share, from $639 million, or 14 cents a share, a year earlier. Revenue rose to $11.1 billion from $10.9 billion a year earlier. Wall Street expected the company would post revenue of $11.16 billion, according to Reuters Estimates.
The company added 197,000 new high speed customers, while its digital cable base is up to 4.8 million. TW now has 3.9 million high speed Internet customers. The folks using Time Warner DVR is now 862,000 while Video of demand users stand at 1.5 million. The biggest surprise is the total number of telephony users – 220,000. Talk about catching up with not only other cable providers but also independent carriers. Ironically, America Online despite a steady subscriber decline has started to post decent numbers – profits up 8% to $326 million even though it lost 464,000 subscribers. AOL subscribers stand at 22.2 million domestic users, down 2 million from year ago. Looks like the nightmares are about to end at TW for good. (Disclosure: I work for Business 2.0, owned by Time Inc., a division of Time Warner!)