Time Warner Inc. (TWX) has reported a 65.81 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $293 million, or $0.37 a share in the quarter, compared with $857 million, or $1.06 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $976 million, or $1.25 a share compared with $860 million or $1.06 a share, a year ago.
Revenue during the quarter grew 11.47 percent to $7,891 million from $7,079 million in the previous year period. Gross margin for the quarter expanded 245 basis points over the previous year period to 40.97 percent. Total expenses were 78.57 percent of quarterly revenues, down from 80.42 percent for the same period last year. This has led to an improvement of 185 basis points in operating margin to 21.43 percent.
Operating income for the quarter was $1,691 million, compared with $1,386 million in the previous year period.
However, the adjusted operating income for the quarter stood at $1,759 million compared to $1,405 million in the prior year period. At the same time, adjusted operating margin improved 244 basis points in the quarter to 22.29 percent from 19.85 percent in the last year period.
Chairman and chief executive officer Jeff Bewkes said: "We had another very successful year in 2016, demonstrating once more Time Warner's ability to deliver strong financial performance alongside creative and programming excellence. All our operating divisions increased revenue and profits while also making investments to capitalize on the growing demand for the very best video content and new ways to deliver it to audiences around the world. Warner Bros. is once again the 1 supplier of television shows for the broadcast networks, and had its second-best year ever at the global box office, nearing $5 billion in receipts with such hits as Batman v. Superman: Dawn of Justice, Suicide Squad and Fantastic Beasts and Where to Find Them."
Operating cash flow improves
Time Warner Inc. has generated cash of $4,666 million from operating activities during the year, up 21.42 percent or $823 million, when compared with the last year.
The company has spent $1,360 million cash to meet investing activities during the year as against cash outgo of $993 million in the last year.
The company has spent $3,922 million cash to carry out financing activities during the year as against cash outgo of $3,313 million in the last year period.
Cash and cash equivalents stood at $1,539 million as on Dec. 31, 2016, down 28.58 percent or $616 million from $2,155 million on Dec. 31, 2015.
Working capital declines
Time Warner Inc. has witnessed a decline in the working capital over the last year. It stood at $3,782 million as at Dec. 31, 2016, down 16.16 percent or $729 million from $4,511 million on Dec. 31, 2015. Current ratio was at 1.39 as on Dec. 31, 2016, down from 1.56 on Dec. 31, 2015.
Debt moves up marginally
Time Warner Inc. has witnessed an increase in total debt over the last one year. It stood at $24,339 million as on Dec. 31, 2016, up 2.30 percent or $547 million from $23,792 million on Dec. 31, 2015. Total debt was 36.90 percent of total assets as on Dec. 31, 2016, compared with 37.26 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 1 as on Dec. 31, 2016, when compared with the last year.
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