NEW YORK (AP) — Time Warner Inc. said Wednesday that net income grew 51 percent in the last three months of 2012 even as revenue was largely unchanged. Rising fees from cable and satellite companies and higher ad revenue at the TV networks offset revenue declines at the movie studio and magazine businesses.
The company also announced a dividend increase and a new plan to buy back shares. Its stock jumped to its highest level in more than a decade.
The television networks business drove the quarter's performance as revenue there grew 5 percent, offsetting declines elsewhere. The Warner Bros. studio business had a weaker release lineup in the most recent quarter, though it managed to report an operating profit with an emphasis on higher-profit TV production. The Time Inc. magazine business, the smallest of the three, has announced layoffs to reflect reduced demand for print editions.
During a call with analysts, Time Warner executives credited original programs for much of its successes. First-run shows such as a revamped "Dallas" contributed to ratings improvements at Turner cable channels, while series such as "Girls" and "Game of Thrones" helped HBO sign up more subscribers. TV shows produced by the Warner Bros. studio also are finding renewed life on Netflix and other Internet video services.
The TV shows also helped the Warner Bros. business generate its second-highest annual profit ever even without new Harry Potter movies. The final one came out in the summer of 2011.
Time Warner said net income was $1.17 billion, or $1.21 a share, for the fourth quarter of 2012, up from $773 million, or 76 cents a share, a year earlier.
Adjusted for one-time items, earnings came to $1.17 per share. That beat the $1.10 per share that analysts surveyed by FactSet expected.
Revenue edged down to $8.16 billion from $8.19 billion a year ago. Analysts expected revenue of $8.22 billion.
Time Warner also said Wednesday that it is raising its quarterly dividend by 11 percent to 28.75 cents per share. It's payable March 15 to shareholders of record as of Feb. 28. Time Warner said it marks the fourth consecutive year of dividend increases in the double-digit percentage.
The company also said its board has authorized $4 billion in stock buybacks, which tend to increase the stock price for remaining shareholders. The new authorization replaces prior buyback plans, which resulted in $3.5 billion in buybacks from Jan. 1, 2012, to Feb. 1, 2013.
Time Warner's stock increased $2.05, or 4 percent, to close at $52.01 Wednesday after rising as high as $52.72 earlier, its highest level since 2002.