Time Inc. Profits Down $7.5B
Time Warner publishing division reports $6.6 billion loss in 2008.
Time Inc. parent Time Warner today announced a 2008 year-end operating loss of $16 million on $47 billion in revenues, which were up 1 percent from the prior year.
Time Warner attributes the loss, in part, to a $24.2 billion non-cash impairment fee and to declines in its publishing and AOL divisions, the company said.
Magazine publisher Time Inc. reported a $6.6 billion year-end operating loss compared to an operating gain of $907 million in 2007. The company attributes the loss to a $7.1 billion non-cash impairment charge. Meanwhile, revenues decreased 7 percent to $4.6 billion, fueled in part by a 10 percent—$279 million—decrease in advertising revenues. Time Inc. also saw a 2 percent decline in revenue from subscriptions.
The losses were offset, in part, by a $57 million increase in online revenues led by People.com, CNNMoney.com and Time.com, the company said.
During the fourth quarter, Time Inc.’s adjusted operating income fell 70 percent to $124 million and revenues slipped 13 percent to $1.3 billion.
Last fall, Time Inc. underwent a sweeping reorganization that resulted in as many as 600 layoffs.
Time Warner says it plans to divest its cable division, Time Warner Cable, which the company expects to complete by in the first quarter 2009.