As far as how this compares, it really seems like the results were better than expected. Adjusted Operating Income before Depreciation and Amortization climbed 15% to $3.2 billion, reflecting double-digit increases in the Cable, Filmed Entertainment and Publishing segments, as well as a gain at the Networks segment. This growth was offset partly by a decline at AOL. Operating Income was up 29% to $2.1 billion.
Time Warner continued its aggressive share buyback. As of November 6, 2007, the company has repurchased approximately 119 million shares for approximately $2.2 billion since its $5 billion program was announced on August 1. At existing prices, the company expects to complete at least half of the program by the time the time it reports its 2007 full-year and fourth-quarter results.
The AOL unit is also acquiring Quigo, a content-targets advertising firm. AOL was the only unit where there was a drop-off, but after selling the access business that was expected. AOL unit revenues were $1.219 billion versus $1.964 billion in Q3 2006.
The Time Warner Inc. numbers still reflect Time Warner Cable Inc. (NYSE: TWC), but we'll be reporting those on a separate basis due to all the potential spin-off or separation that has been discussed.
Time also maintained its 2007 full year earnings forecast of $1.07 after a 12 cent gain. If you back that out, the estimate from the company would be roughly 97 cents on a normalized basis, and consensus from First Call is $0.98. Time Warner also continues to expect its 2007 full-year growth rate in Adjusted Operating Income before Depreciation and Amortization to be in the mid-to-high teens, off a base of $11.0 billion in 2006, which reflects the recasting of the 2006 financial results for discontinued operations.
With more than two hours until the open and with DJIA futures down so much, it is too soon to tell where this will open. Time Warner Inc.'s conference call is at 10:30 AM EST, and we'll be liveblogging for the analyst Q&A here.
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