Time Warner Cable already has its own stock and now Time Warner CEO Jeffrey Bewkes says the whole cable company is going to be set free from the parent. Meanwhile, Time Warner reported that Q1 net income fell 36% to 21 cents per share, or a total of $771 million. Revenues, however, rose 2% to $11.4 billion.
Just how Time Warner will dispose of its 84% stake in Time Warner Cable remains to be worked out. Bewkes promised details “soon.”
AOL was the big drag on Time Warner in Q1, with operating income before depreciation and amortization (OIBDA) down 25% as revenues fell 23%. Cable revenues rose 8% and OIBDA gained 7%. The movie biz saw revenues rise 4%, but OIBDA fell 16%. Publishing revenues were flat, but operating income shot up 73%, primarily due to big restructuring charges a year earlier.
As for Time Warner’s cable networks, including such names as CNN, TBS, TNT and HBO, revenues were up 10% to $2.7 billion, with ad revenues up 13%. The company said ad sales gains were driven primarily by the domestic entertainment channels and CNN. OIBDA was down 2% to $958 million.