NEW YORK: Time Warner on Wednesday posted its 2006 full year financial results plus Q4 numbers to December 31. Net income for the year rose to $6.6 billion (€5.08bn; £3.37bn) compared with $2.7bn in 2005, a year-on-year increase of 144%.
Chairman/ceo Richard H Parsons, in hand-rubbing mode, declared himself "delighted that 2006 proved to be a good year for Time Warner". He continued: "Taken together, our businesses performed well and we achieved all of our announced financial objectives.
"We expect 2007 to be another superb year for Time Warner. Our businesses are well positioned to generate strong operating and financial performances.
"On the strategic front, we aim to create substantial incremental value by completing the integration of our recently acquired cable systems, further developing AOL's online advertising business, and driving digital initiatives across the entire company."
AOL revenues declined 5% to $7.9bn, due to a 14% decrease in subscription revenues, offset in part by a 41% increase (to $548 million) in advertising revenues.
The lower subscription revenues are the result of AOL's strategy, implemented last August, of offering email services and certain other products free of charge to internet users.
Ad revenues reflected strong growth in display advertising, plus ads appearing on third-party websites generated by Advertising.com, and paid-search advertising.
Parsons undertook to further develop "AOL's online advertising business and drive digital initiatives across the entire company".
Data sourced from Time Warner website; additional content by WARC staff