03-08-2012: Time Warner has posted a full 33% drop in Q2 profit, to $430 million, thanks to dismal ratings at CNN and magazine sale declines. Total Q2 sales fell 4.1% to $6.74 billion. Net income was down from $638 million one year earlier.
Reflecting a change in operational focus, 70% of Time Warner’s annual operating income came from cable nets, including hotter-than-ever HBO and despite CNN’s woes. The networks side of the house actually increased revenue 4% to reach $3.6 billion in the quarter.
Time Warner has been more focused on broadcast productions of hit shows like Big Bang Theory and the cable nets, as a strategic shift after spinning off Time Warner Cable.