Time Warner Predicts Loss For Year
Updated 7:36 AM PST, Wed, Jan 7, 2009
Time Warner Inc. , which owns CNN cable network and Time magazine, said Wednesday that it expected to record a fourth-quarter $25 billion write-down that would lead to an operating loss for the period.
The media company, based in New York, also anticipates a full-year loss, down from a previous outlook for a profit of $1.04 to $1.07 a share.
The $25 billion write-down is for its cable, publishing and AOL units. Time Warner Inc. also anticipates a charge of about $280 million related to a December judgment against Turner Broadcasting System for the 2004 sale of its winter sports teams, and a charge of $50 million to $60 million for a lease restructuring.
The company also predicts it will increase reserves by about $40 million for possible credit losses related to some customers that have declared bankruptcy.
Time Warner is scheduled to report fourth-quarter results on Feb. 4.
In addition, Time Warner Cable, which is owned by Time Warner, said it expected to record a $15 billion noncash impairment charge on its cable franchise rights in the fourth quarter, resulting in a loss for 2008.
Time Warner Cable, the nation’s second-largest cable television operator, also expects to record an impairment charge of about $350 million on its investment in the wireless broadband provider, the Clearwire Corporation.
The cable company now expects to book a loss for 2008. Analysts surveyed by Thomson Reuters forecast 2008 earnings of $1.16 a share.
Copyright Associated Press
First Published: Jan 7, 2009 7:12 AM PST
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