Problems of Time Warner by Jana Kokavcova

Time Warner - the world's largest media company shares had fallen after the unit reported second-quarter ad revenue growth of 16 percent in the prior four periods. The company net income fell to $1.09 billion from $2.32 billion a year earlier. Cable division revenue rose 25 percent to $4 billion. This company tried to buy new customers with giving them net, when they take combination of digital phone, video and broadband services. But it goes worse than analyst forecast. There is also great competition against phone companies offering similar services. Why is it so? There are some reasons for this situation. Time Warner had a gain of $727 million tied to the sale of a stake in Time Warner Telecom and Warner Bros.' Australian theme parks year earlier. Revenue at Time Warner's movie division rose. Leader of this revenue are sales of "Harry Potter and the Order of the Phoenix" and DVD sales of "300". So operating income more than doubled to $268 million. The latest net income results included investment gains and tax benefits. Last year Time Warner booked large gains from cable operator Adelphia Communications, the sale of its interest in Time Warner Telecom Inc. and Warner Bros. ‘ Australian theme parks, and other tax benefits. We have news that shares of Time Warner which were down since the beginning of this year rallied 3 percent on Tuesday in anticipation of rosier earnings. The company said that it still planned to earn $1.07 a share this year.

related story: http://www.iht.com/articles/2007/11/07/bloomberg/bxtw.php

by Jana Kokavcova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.