TWX beats and increases buyback: Time Warner Raises Buyback to $12.5B
Wednesday November 2, 6:33 am ET Time Warner Raises Buyback to $12.5 Billion, Posts Higher Third-Quarter Profit
NEW YORK (AP) -- Time Warner Inc., the world's largest media company, reported sharply higher third-quarter earnings Wednesday and raised its stock repurchase program to $12.5 billion from $5 billion in an effort to meet shareholder demands to lift its slumping stock price.
The New York-based company, whose properties include the Warner Bros. studio, HBO, CNN, a major cable TV company and Time magazine, posted net earnings of $897 million versus $499 million in the same period a year ago.
Per-share earnings came in at 19 cents compared with 11 cents a year ago. Analysts polled by Thomson Financial were expecting a profit of 17 cents per share.
Revenues rose 6.1 percent to $10.54 billion from $9.94 billion.
At the same time, the company also announced that its board of directors had approved an increase in its share buyback program to $12.5 billion over the next 21 months, up from the previous level of $5 billion.
Shareholders have been clamoring for Time Warner to take steps to lift its moribund share price, which is still about 75 percent below the levels it saw prior to its agreeing to be bought in early 2000 by AOL.
The third-quarter gains were driven by strong showings in cable TV, which benefited from customers signing up for more premium services like high-speed Internet and digital phone, and cable networks, which had gains from the syndication of HBO's "Sex and the City" and advertising gains.
My comments on companies are usually my opinion of long term success (years). The PPS may go up or down greatly in the meantime depending on the number of greedy suckers with money.
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