Strong sales of internet access in Europe helped boost Time Warner’s (NYSE: TWX) 4Q profit by 34 percent, the company reported Wednesday morning.
Earnings for the quarter amounted to $1.75 billion, or 44 cents per share, up from $1.3 billion, or 28 cents a share, in the same period a year ago. Revenues rose 8 percent to $12.5 billion from $11.5 billion.
The sale of AOL’s internet access in the UK and France resulted in a gain of $769 million, as well as a restructuring charge at AOL of $179 million. Overall, however, things were not all rosy at AOL, as other findings showed:
—Revenues for the total AOL unit dropped 8 percent and adjusted profits fell 10 percent as it attempts to reinvent its business model and move away from its identity as an ISP and toward selling online advertising.
—AOL is still feeling the effects of the shift to free services; it lost 2 million U.S. ISP customers in the quarter, leaving it with 13.2 million as of the end of the year.
—The film division’s 4Q revenues declined 15 percent ($531 million) to $3.1 billion.
—Network (Turner Broadcasting and HBO) revenues rose 10% ($251 million) to $2.7 billion for the quarter.
—For all of 2006, Time Warner earned $6.55 billion, or $1.55 per share, up from $2.67 billion, or 57 cents per share, a year earlier, as revenues rose 4 percent to $44.2 billion from $42.4 billion.
Earnings release (pdf) | Webcast | Slides | Financials