Time Warner Inc. Reports Strong Results For 2011 Fourth Quarter & Full Year

Time Warner Inc. (NYSE:TWX) today reported financial results for the three months and full year ending December 31, 2011.

Chairman and Chief Executive Officer Jeff Bewkes said: “In 2011, Time Warner had an ambitious agenda and we accomplished what we set out to do and more. We increased revenues 8%, Adjusted Operating Income 9%, and Adjusted EPS by 20%, which means we more than doubled Adjusted EPS over the past three years. That performance is a testament to the quality of our content, the strength of our brands, our creative and managerial talent and our competitive position. We also continued to roll out Content Everywhere versions of our products across all our divisions, harnessing technology to give consumers more ways, places and platforms on which to enjoy our great content. While investing aggressively to drive our long-term growth, we also returned $5.6 billion to our shareholders through dividends and share repurchases.”

Mr. Bewkes continued: “For 2012, we will execute against the same strategic priorities that have driven our success in recent years: We’re investing aggressively in programming, production and marketing. We’re further accelerating our Content Everywhere initiatives. We’re expanding our presence internationally in attractive territories. And we’re maintaining our strict focus on operating and capital efficiency. Reflecting both our confidence and our continued commitment to strong shareholder returns, today we also announced an increase in our dividend and a new $4 billion stock repurchase authorization.”

Full-Year Company Results

Full-year Revenues increased 8% from 2010 to $29.0 billion, reflecting growth at the Networks and Filmed Entertainment segments. Adjusted Operating Income rose 9% to $5.9 billion, due to strong results at all of the Company’s segments. Operating Income increased 7% to $5.8 billion. Adjusted Operating Income and Operating Income margins were each 20% in 2011, the same as in 2010.

The Company posted 2011 Adjusted Diluted Net Income per Common Share (“Adjusted EPS”) of $2.89 versus $2.41 for the prior year. Diluted Income per Common Share was $2.71 compared to $2.25 in 2010.

In 2011, Cash Provided by Operations from Continuing Operations reached $3.4 billion, and Free Cash Flow totaled $2.7 billion. As of December 31, 2011, Net Debt was $16.0 billion, up from $12.9 billion at the end of 2010, due to share repurchases and dividends, as well as investment and acquisition spending, offset by the generation of Free Cash Flow.

Fourth-Quarter Company Results

Revenues increased 5% from the year-ago quarter to $8.2 billion, reflecting higher revenues at the Filmed Entertainment and Networks segments. Adjusted Operating Income rose 20% to $1.7 billion, driven by strong results across the Company’s segments. Adjusted Operating Income margins were 21% versus 18% in the 2010 quarter. Operating Income increased 17% to $1.7 billion in the quarter, while Operating Income margins were 20% compared to 18% in the 2010 quarter.