Ad Revs Fell 22 Percent at Time Inc. in 2009
Time Warner’s publishing unit reported $246 million in operating income.
Time Warner reported Wednesday that its publishing unit, Time Inc., generated $3.7 billion in revenue in 2009, down 19 percent from 2008. Those losses were fueled largely by a 22 percent or $541 million decline in advertising revenue. Meanwhile, subscription revenues declined 13 percent for the year and other revenues fell 24 percent.
Time Inc. generated a $246 million operating profit in 2009, up from a $6.6 billion loss in 2008—the result of $7.2 billion in non-cash impairment charges. The results for 2009 included $92 million in restructuring charges during the fourth quarter. It reported an operating income of $79 million on $1.1 billion in revenues during last year’s fourth quarter, a decline of 13 percent compared to the same period last year.
In November, the publisher was said to have eliminated as many as 500 positions from its overall workforce. It eliminated roughly 600 staffers from its workforace at the end of 2008. Last summer, Time Inc.’s Lifestyle Group closed 32-year-old luxury lifestyle magazine Southern Accents.
After shedding its Time Warner Cable and AOL units last year, Time Warner reported full-year 2009 operating income of $4.5 billion, compared to an operating loss in 2008 of $3 billion, which included Time Inc.’s $7.2 billion in impairment charges. Revenues declined 3 percent to $25.8 billion.
Operating income during the fourth quarter was $1.2 billion while revenues were $7.3 billion, an increase of 2 percent.
During the earnings call, Time Warner CEO Jeff Bewkes said the company in 2010 will “leverage our brands and scale to make the most compelling content, improve our efficiency, expand internationally and accelerate the digital transition in our businesses.” He said the company is evolving new business models, including a program called “TV Everywhere” and the digital storefront initiative headed by former Time Inc. executive vice president John Squires.
As of December 31, Time Warner carried about $65.7 billion in total assets and approximately $15.3 billion in long-term debt.