Harry Potter conjures up profits for Time Warner
TIME Warner rounded off a better-than-expected year on the back of its growing cable networks and the lucrative final Harry Potter film.
The New York-based media and entertainment company reported fourth quarter profits of $772m (£488m), up slightly on last year’s $766m, from a five per cent rise in quarterly revenue to $8.2bn.
This contributed to a full year revenue of $28.9bn – up an annual eight per cent in Time Warner’s highest growth rate since 2003 – and produced $2.9bn in profits.
However, the company ended the year with 24 per cent increased net debt of $16bn, due to share repurchases and investment spending.
The eighth installment of the Harry Potter series boosted full-year revenues for Time Warner’s filmed entertainment division nine per cent to $12.6bn.
The most successful franchise in film history will keep the money pouring in due to continuing DVD sales and Orlando’s Wizarding World theme park, soon to launch in LA.
Hotly-awaiting films hitting screens in 2012, such as The Hobbit and The Dark Knight Rises, are expected to give Time Warner another bumper year.
However, Time Warner’s largest chunk of revenue in 2011 came from its cable networks, which grew nine per cent to $13.7bn.
Subscription fees at its networks, including HBO, rose five per cent to $3.5bn, while cable advertising rose two per cent, driven by non-US markets.
The firm also announced a new $4bn stock repurchase authorisation by its board.
Chief executive Jeff Bewkes said the company would invest aggressively and expand internationally this year.
Shares rose three per cent to $39.24 before closing flat at $38.11.