Updated from 9:14 a.m. EST with correction of 2014 guidance.
NEW YORK (TheStreet) - Time Warner (TWX - Get Report) removed the curtain on Home Box Office, its highly popular and profitable cable channel, disclosing the division generated $4.9 billion in revenue, earning $1.7 billion in operating income in 2013.
The disclosure is Time Warner's first direct depiction of HBO's earnings profile and comes at a time when the media and entertainment conglomerate is moving towards a spinoff of the company's publishing business, Time Inc. While that move, along with other changes to Time Warner's reportable segments give a better glimpse into the profitability of each of the company's various divisions, they will have no impact on earnings.
In the fourth-quarter, Time Warner separated its former 'Networks' reportable segment into Turner and Home Box Office and changed the names of its Film and TV Entertainment unit to Warner Bros. and its Publishing reportable segment to Time Inc.Time Warner is preparing to spinoff Time Inc. later in 2014.
Soon-to-be spun off Time Inc., however, saw its revenue and operating profits fall in 2013.
Time Warner also increased its quarterly dividend 10% to $0.3175 a share. After buying back $3.9 billion in stock in 2013, Time Warner's board increased the company's share repurchase authorization to $5 billion. The company also provided guidance that it expects low double digit earnings growth from the $3.51 it earned, excluding Time Inc., in 2013.
Shares in Time Warner fell 1.7% in early Wednesday trading to $61.36.