Time Warner Posts $16 Billion Loss (Update)

Updated from 6:40 a.m. EST

Time Warner (TWX Quote) on Wednesday swung to a fourth-quarter loss because of a massive writeoff and offered a glum picture for 2009.

The media company posted a loss of $16 billion, or $4.47 a share, compared with a profit of $1 billion, or 28 cents a share, in the year-earlier period. Excluding one-time items, including a $24.2 billion impairment charge, Time Warner earned 23 cents a share in the quarter, falling short of consensus analyst estimates of 26 cents a share as gathered by Thomson Reuters.

One month ago, Time Warner warned that it would take a noncash impairment charge related to goodwill and intangible assets in the fourth quarter of about $25 billion before taxes. The charge stems from the company's cable, publishing and AOL segments.

One week ago, Time Warner said that it would lay off 10%, or 700 people, from its AOL division.

Total revenue slipped 3% from a year ago to $12.3 billion, as declines in Time Warner's filmed entertainment, AOL, and publishing units were offset only partially by gains in its cable and networks businesses. Analysts had forecast revenue of $12.71 billion.

"Operationally, we'll continue to improve the efficiency of our businesses while creating even more of the compelling content that's becoming increasingly valuable," said CEO Jeff Bewkes. "At the same time, we'll strengthen our balance sheet, improve our strategic flexibility and return capital to our stockholders on a consistent basis. Through these steps, we expect to emerge from this downturn in an even stronger competitive position."

For 2008, Time Warner said revenue grew 1% to $46.98 billion, compared with Wall Street's target of $47.42 billion. Adjusted earnings totaled 99 cents a share, compared with forecasts of a full-year profit of $1.03 a share.