Time Warner Posts Q4 Loss of $16 billion

06 February 2009

NEW YORK: Time Warner posted an eyewatering $16 billion (€12.4bn; £11.0bn) net loss in the final quarter of 2008 compared with a profit of $1bn in the year-ago period.

Revenues dropped by 3% to $12.3bn in the last four months of 2008, with the company's magazine unit and online arm AOL suffering large drops in ad revenues, trends predicted to continue into this year.

The company also recently announced an impairment charge of $24.2bn, which saw the value of its cable operations fall by $15bn.

Despite this, UBS analyst Michael Morris says the company's earnings could still be considered "encouraging in the current environment."

Time Warner predicts the outlook for the first quarter of this year could be worse than the end of 2008, and is said to be considering its options with regard to AOL as it seeks to focus on content provision.

Data sourced from Financial Times; additional content by WARC staff