Northern, WI 02\/07\/2013 (wallstreetpr) – Time Warner Inc.(NYSE:TWX) recorded a three-month high after a boost in profit and the company\u2019s announcement of a share buyback scheme.<\/p>\n
60% of the company\u2019s annual sales comes from the TV business. Understandably CEO Jeffrey Bewkes has devised the growth strategy on it. Special emphasis was put on developing high-budget shows such as the famed \u201cGame of Thrones\u201d by Home Box Office (HBO), and obtained television rights for major sporting events.<\/p>\n
David Bank, a media analyst opined that the affiliate performance of the TV service providers was great. Growth in that segment means its \u00a0\u201ctheir big leg up moving forward\u201d, he added.<\/p>\n
Net income in the fourth quarter scaled up 51% to $1.21 per share from $0.76 a share from a year back. Dividends which increased 11% to reach 29 cents per share will be paid to shareholders on Feb. 28th<\/sup> . The share repurchase process will be worth $4 billion. \u201cThe share buybacks are acting as a bridge to 2014 when they can line up bigger affiliate fee increases, at least in the double-digit percentage range,\u201d Bank emphasized.<\/p>\n However, Time Warner\u2019s cable networks\u2019 rating went down by 6% during this period.<\/p>\n In addition, the company said earnings from deals made with online video-streaming companies like Netflix Inc. (NASDAQ: NFLX) and Amazon Inc. (NASDAQ:AMZN), were as much as $350 million in 2012. The company is also undertaking a restructuring that could cost as much as $60 million at its magazine unit aka Time Inc. which may cause earnings to reach the low double digits.<\/p>\n To lift the under-performing divisions of the company, Bewkes recently reshuffled the executive management team of the company. Laura Lang, recently appointed as manager of Time Inc. by Bewkes, cut 500 jobs to better manage dwindling sales. Former NBC Universal Chief, Jeff Zucker was appointed as head of CNN. Bill Nelson made way for Richard Plepler to take charge as Chief Executive Officer of the HBO in January.<\/p>\n Kevin Tsujihara was promoted to run Warner Bros for his \u201cgreatest breadth of experience across Warner\u2019s businesses\u201d, Bewkes asserted.<\/p>\n When asked about Thomas Tull led film-financing group Legendary Entertainment\u2019s decision to walk away from the partnership with Warner Bros., Bewkes said \u201cWe\u2019re very close to Tom, and we have a great relationship with him. There\u2019s no contentiousness — there\u2019s problem-solving going on.\u201d<\/p>\n Time Warner Inc. (NYSE:TWX) shares were decreased by 0.90% and currently trading at $51.53.<\/p>\n Netflix Inc. (NASDAQ:NFLX) shares were decreased by 2.07%\u00a0and currently trading at $180.60<\/p>\n Amazon Inc. (NASDAQ:AMZN) shares were decreased by 1.46%and currently trading at $262.22. at $258.38<\/p>\n","protected":false},"excerpt":{"rendered":" Northern, WI 02\/07\/2013 (wallstreetpr) – Time Warner Inc.(NYSE:TWX) recorded a three-month high after a boost in profit and the company\u2019s announcement of a share buyback […]<\/p>\n","protected":false},"author":3,"featured_media":5399,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[265],"tags":[717,1385,1562],"stock_ticker":[],"class_list":["post-5398","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international","tag-nasdaqamzn","tag-nasdaqnflx","tag-nysetwx","entry"],"acf":[],"yoast_head":"\n