$13 Billion Loss for Time Warner

Fewer feature films and softening DVD sales contributed to Warner Bros. Entertainment posting a 2 percent decline in revenues for the fiscal year. Overall, Warner Bros. parent company Time Warner Inc. reported a net loss of $13.4 billion, or $3.74 per diluted share, on revenues of $47 billion. For the 2007 fiscal year, the company reported net income of $4.4 billion, or $1.17 per diluted share, on revenues of $46.5 billion. For the fourth quarter ending Dec. 31, Time Warner reported a net loss of $16 billion, or $4.47 per diluted share, on revenues of $12.3 billion. For the same period in 2007, the company reported net income of $1 billion, or $0.28 per diluted share, on revenues of $12.7 billion. Time Warner is parent of Burbank-based Warner Bros., AOL, Time Warner Cable, HBO and publishing company Time Inc. Despite a slate of films that included summer blockbuster “The Dark Knight,” the studio still fell short of revenues generated the previous year with such films as “Harry Potter and the Order of the Phoenix,” “300,” and “I Am Legend.” For the coming year, Time Warner forecast its earnings per share to remain flat due when compared to 2008 to $250 million in costs in restructuring Warner Bros. and AOL. In January, Warner Bros. announced cuts in about 10 percent of its worldwide workforce through layoffs, freezing positions and outsourcing.