Time Warner, Reader’s Digest Post Increases in Second and Fourth Quarters, Respectively
Time Warner posted a $1 billion profit in the second quarter of the year, after losing $409 million in the same quarter a year earlier due a $3 billion charge for settling securities litigation. Revenues were up slightly, 1 percent, to $10.7 billion from $10.6 billion a year earlier.
The company, which owns Time Inc. publishing, earned 24 cents per share in the April-June period versus a loss of 9 cents per share a year ago. The company’s publishing holdings, which include Time, Sports Illustrated and People magazines, posted a 2 percent decline in revenues and an 11 percent fall in profits.
Meanwhile, Reader’s Digest, which runs its operations on fiscal calender running from July 1 to June 30, said fiscal fourth-quarter net income rose as profits improved at RD North America and RD International, offsetting weakness at its consumer business service unit. The Pleasantville, N.Y.-based company said net income rose to $12.2 million, or 13 cents a share, from $11.2 million, or 11 cents a share. Adjusted earnings were 24 cents a share. Fourth quarter revenue rose to $557.3 million from $556.8 million. Revenues for the year were approximately $2.4 billion, about the same as revenues for fiscal 2005.