Time Warner Q3 Hit by Post-‘Rings' Revenue Slide4 Nov, 2004 By: Erik Gruenwedel
Reductions in Time Warner's worldwide home video sales marginally affected a near 8 percent drop in third-quarter (ended Sept. 30) net income to $499 million, or 11 cents per share, compared to earnings of $541 million, or 12 cents per share, during the same period last year.
The media conglomerate attributed the decline in part to a “difficult comparison” with last year's successful The Lord of the Rings: The Two Towers retail release.
Overall, international box office returns for Troy and Harry Potter and the Prisoner of Azkaban, increases in online and print advertising, and a 25 percent rise in cable video-on-demand service helped drive up quarterly revenue 4.8 percent, to $9.9 billion.
In addition, Time Warner said it has allocated $500 million in legal funds for ongoing federal accounting probes.