By Kenneth Li
Time Warner's shares, which have fallen as much as 36 percent since 2007, rose more than 2 percent in morning trading.
While profit growth is sharply lower than 2007's 17 percent rise, that is largely due to Time Warner Cable's acquisition of Adelphia cable systems, which closed in mid-2006. Excluding gains from that deal, 2007 growth would have been 8 percent.
Investors are also looking for any clues on whether Time
Warner should keep or spin off AOL, which was restructured last
year to focus on being a one-stop shop for online advertising.
Pressure on Time Warner to do something about AOL have
accelerated after Microsoft Corp's
"Looking ahead, we've identified key initiatives that will enable us to deliver strong business results long into the future while increasing our returns to our shareholders," Bewkes said in a statement. "We'll aggressively control costs ... We'll make sure that Time Warner has the right businesses in the right structure.
Time Warner said fourth-quarter profit fell to $1 billion, or 28 cents per share, from $1.8 billion, or 44 cents per share, a year earlier, when it logged a big gain from sales of AOL units and other items.
Year-earlier profit, excluding the gain, was 22 cents a share.
"The numbers were slightly above our expectations across the board, led by cable," said analyst Christopher Marangi of Gabelli & Co, which owns shares of Time Warner. "I think the main event is hearing about the strategic direction for the company."
Time Warner's results contrast those of News Corp
AOL's quarterly revenue fell 32 percent, dragged down by a loss of 740,000 subscribers, while adjusted operating profit rose 29 percent. Online advertising growth, a closely watched barometer of progress for the division's restructuring, rose 10 percent.
Time Warner said it expected 2008 earnings per share of $1.07 to $1.11 from continuing operations, below Wall Street's projection of $1.12.
(Editing by Lisa Von Ahn and Maureen Bavdek)
