Menu
Time Warner to post loss, partly blames AOL

Time Warner to post loss, partly blames AOL

Time Warner will post a net loss in 2008, in part due to poor performance at its AOL Internet unit.

Time Warner has revised its financial forecast and now expects to close the 2008 fiscal year with a net loss, due to a forthcoming multi-billion dollar asset write-down partly involving its struggling AOL Internet unit.

Time Warner, which will announce its fourth-quarter and full-year financial report on Feb. 4, said Wednesday it will post a net loss for 2008. Its previous outlook, announced on Nov. 5, called for the company to earn between $1.04 and $1.07 per share in 2008.

The estimated $25 billion non-cash impairment charge is the result of an ongoing review of the valuation of Time Warner's cable, publishing and AOL units, the company said.

Time Warner, which recorded operating income of $8.9 billion in 2007, now also expects to post an operating loss in 2008.

Another metric that the company downgraded expectations for on Wednesday was adjusted operating income before depreciation and amortization, which Time Warner expected to see grow about 5 percent in 2008. It now expects it grow only 1 percent due to some one-time charges as well as to disappointing online ad revenue from AOL.

AOL, whose business model Time Warner transformed from being subscription-based to being advertising-based, has lagged its rivals and the market average in online ad revenue growth in the past year.

There have been consistent rumors that Time Warner is eager to divest itself of AOL. Yahoo, which has a host of problems of its own, has been mentioned as a possible buyer.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Meet the winners of the 2020 Reseller News Innovation Awards

Meet the winners of the 2020 Reseller News Innovation Awards

Reseller News honoured the standout players of the New Zealand channel in front of more than 500 technology leaders in Auckland on 21 October, recognising the achievements of top partners, start-ups, vendors, distributors and individuals.

Meet the winners of the 2020 Reseller News Innovation Awards
Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Show Comments