Fourth-Quarter Results

Revenues declined 7% ($77 million) to $967 million, due mainly to decreases of 39% ($52 million) in Other revenues and 4% ($24 million) in Advertising revenues, while Subscription revenues were flat. Other revenues declined due to the absence of QSP. Adjusted Operating Income decreased 10% ($23 million) to $201 million, primarily due to the absence of QSP. Operating Income decreased 3% ($7 million) to $200 million.

CONSOLIDATED NET INCOME AND PER SHARE RESULTS

Full-Year Results

For the year ended December 31, 2012, Adjusted EPS was $3.28 compared to $2.89 in 2011. The increase in Adjusted EPS primarily reflected higher Adjusted Operating Income and fewer shares outstanding.

The Company reported Net Income attributable to Time Warner Inc. shareholders of $3.0 billion, or $3.09 per diluted common share in 2012. This compares to Net Income attributable to Time Warner Inc. shareholders in 2011 of $2.9 billion, or $2.71 per diluted common share.

For the years ended December 31, 2012 and 2011, the Company reported Net Income of $3.0 billion and $2.9 billion, respectively.

Fourth-Quarter Results

Adjusted EPS was $1.17 for the three months ended December 31, 2012, compared to $0.94 in last year’s fourth quarter. The increase in Adjusted EPS primarily reflected higher Adjusted Operating Income and fewer shares outstanding.

For the three months ended December 31, 2012, the Company reported Net Income attributable to Time Warner Inc. shareholders of $1.2 billion, or $1.21 per diluted common share. This compares to Net Income attributable to Time Warner Inc. shareholders in 2011’s fourth quarter of $773 million, or $0.76 per diluted common share.

For the fourth quarter of 2012 and 2011, the Company reported Net Income of $1.2 billion and $772 million, respectively.

USE OF NON-GAAP FINANCIAL MEASURES

The Company utilizes Adjusted Operating Income (Loss) and Adjusted Operating Income margin, among other measures, to evaluate the performance of its businesses. Adjusted Operating Income (Loss) is Operating Income (Loss) excluding the impact of noncash impairments of goodwill, intangible and fixed assets; gains and losses on operating assets; gains and losses recognized in connection with pension plan curtailments, settlements or termination benefits; external costs related to mergers, acquisitions or dispositions, as well as contingent consideration related to such transactions, to the extent such costs are expensed; and amounts related to securities litigation and government investigations. Adjusted Operating Income margin is defined as Adjusted Operating Income divided by Revenues. These measures are considered important indicators of the operational strength of the Company’s businesses.

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