Time Warner Inc. Reports Third-Quarter 2009 Results
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NEW YORK--(BUSINESS WIRE)--Nov. 4, 2009-- Time Warner Inc. (NYSE:TWX) today reported financial results for its third quarter ended September 30, 2009.

Chairman and Chief Executive Officer Jeff Bewkes said: “Time Warner is firmly on track to post solid results this year in spite of the tough economic environment. Driven by the better-than-expected performance at our Content Group this quarter, we're raising our 2009 business outlook. We still expect to spin off AOL by the end of the year, and we’re making great progress on our other longer-term strategic priorities. At the same time, we're investing even more in our businesses and increasing our direct returns to stockholders this year, while significantly strengthening our balance sheet. I’m confident that the new content-focused Time Warner will be well positioned to deliver steady and attractive stockholder returns in 2010 and beyond.”

Company Results(1)

In the quarter, Revenues declined 6% from the third quarter of 2008 to $7.1 billion. Lower revenues at the AOL, Publishing and Filmed Entertainment segments more than offset growth at the Networks segment.

Adjusted Operating Income before Depreciation and Amortization (“Adjusted OIBDA”) was down 9% to $1.8 billion, as declines at the AOL and Publishing segments more than offset growth at the Networks and Filmed Entertainment segments. Operating Income decreased 10% to $1.4 billion.

For the Content Group (which consists of the Networks, Filmed Entertainment, Publishing and Corporate segments), Revenues were down 3%, Adjusted OIBDA decreased 1%, and Operating Income declined 2%.

For the first nine months of 2009, Cash Provided by Operations from Continuing Operations was $3.5 billion, and Free Cash Flow totaled $3.0 billion (reflecting a 61% conversion rate of Adjusted OIBDA). As of September 30, 2009, Net Debt was $10.4 billion, down $10.3 billion from $20.7 billion at the end of 2008, due primarily to the $9.3 billion special cash dividend received from Time Warner Cable Inc. on March 12, 2009, in connection with its separation from the Company, as well as the generation of Free Cash Flow.

Adjusted Diluted Income per Common Share from Continuing Operations (“Adjusted EPS”) was $0.61 for the three months ended September 30, 2009, compared to $0.65 in last year’s third quarter. Diluted Income per Common Share from Continuing Operations was $0.55 for the three months ended September 30, 2009, compared to $0.63 in last year’s third quarter.(2)

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