Get Media Industry Alerts
Visit min's sister site:

Facebook  Twitter  LinkedIn   Google+   
Latest Issue »
Subscribe Now »
Get 4
Free Issues »

Time Warner Reports a Modest Overall Decline–Worse at Time Inc.–in 2012 Results

Wednesday, February 6, 2013

One of the most telling aspects of Time Warner,Inc.'s fourth-quarter/full-year earnings statement for 2012 released this morning (Feb. 6)  was that chairman/CEO Jeff Bewkes' "highlights" did not mention the company's publishing businesses at all. Overall, full-year revenues decreased 1% from 2011 to $28.7 billion, as growth at the Networks segment was offset by declines at the Film and TV Entertainment and Publishing (Time Inc.) segments.

Buried deeper in the official earnings statement is the unsurprising news that Time Inc. experienced a decline of 7% ($241 million) to $3.4 billion. This reflects decreases of 5% ($104 million) in advertising revenues, 5% ($61 million) in subscription revenues and 21% ($83 million) in "other revenues." The company attributes its advertising revenue decline to lower magazine advertising demand, which were partly offset by revenues from and, the management of which was transferred from Turner Broadcasting to Time Inc. during the second quarter of 2012. Lower domestic and international newsstand sales were cited as the reason for the decrease in subscription revenues.

On a slightly more positive note, Time Inc.’s 2012 share of overall domestic advertising was 21.5%, up from 21.0% in 2011 (Publishers Information Bureau data). Regardless of its dominance of the dwindling advertising market, Time Inc.'s adjusted operating income decreased 20% ($117 million) to $463 million due to its decline in revenues. The company specifically states that the drop in operating income was partially offset by cost savings initiatives. Clearly, given the recent reduction of 6% of Time Inc.'s worldwide staff, the company will be seeking to offset Q1 losses with further cost-saving initiatives.

Time Warner's financials are pleasing Wall Street. At 10:45 a.m. (Eastern), the stock was trading at $52.60 per share on the New York Stock Exchange, +5.3% from yesterday's $49.96 close.

If you have breaking news to share please contact min's editors.

Friend Us on Facebook at


min's Magazine Media Awards Breakfast
June 15 | Yale Club, NYC
Register Today

min's Integrated Marketing Awards
Entry Deadline: June 17
Enter Today

min Webinar:
How To Get Even More From Facebook

June 21 | 1:30 - 3:00 (ET)
Register Today

See all events and awards

Search Jobs
Media Jobs
Stagnito Business Information
Randolph, NJ

Sales Director
Star Tribune Media
Minneapolis, MN

Associate Editor/Content Specialist
Specialty Food Association
New York City

Audience Development Director
Sosland Publishing Company
Kansas City, MO

Senior Writer
Angie's List
Indianapolis, IN

White Papers
Get even smarter.  Need a quick primer on a media topic? Download a white paper!

Optimizing Your Printer Services - By MRI

Media Insights: minsider Viewpoints from the Front Lines - By min

View Whitepapers
min Contests

min contests

Want to sponsor a min contest?

Inside min This Week

Free Eletters — Sign up Now