Spurred by a strong performance in advertising sales at its
cable networks, Time Warner
boosted its quarterly net profit 76 percent, company officials said.
This performance resulted in earnings of $42.1 billion in 2004, a 6 percent increase from 2003. Net income for the year was $3.4 billion compared to $2.6 billion for 2003.
The media conglomerate said its fourth-quarter net profit increased
to $1.13 billion, or 24 cents a share. That is up from $639 million, or 14
cents a share, from 2003. Total revenue for the quarter that ended Dec. 31
was $11.1 billion, up from $10.9 billion during the same period the year before.
Advertising revenue provided the biggest boost in 2003 with an increase
of 16 percent to $2.02 billion.
“I’m pleased that we posted such an impressive year in 2004,” Dick Parsons, chairman and CEO, said in a released statement. “Our
financial performance was strong, meeting or exceeding all our full-year
objectives and greatly enhancing our flexibility.”
The company’s America Online division also posted improved earnings in
the fourth quarter despite losing nearly 500,000 subscribers last year,
according to the company. Net profits saw an 8 percent increase to $326
million. Revenues rose 1 percent, the company said.
Time Warner expects to improve its online division this year with a
offering from the cable unit and AOL.
Time Warner also was able to put some unpleasant business behind it in the
fourth quarter after settling
a dispute with the U.S. Department of Justice. The company was forced to pay
out over $500 million in two separate cases of accounting fraud.