As of this writing, shares of Time Warner were up 0.85% to $81.50 per share, while AOL shares were down 0.13% to $44.77 per share
AOL and Time Warner released their latest earnings reports before opening bell this morning. AOL posted adjusted earnings of 92 cents per share on $710.3 million in revenue. Analysts had been expecting earnings of 72 cents per share on $723 million in revenue. In the same quarter a year ago, AOL reported adjusted earnings of 72 cents per share.
Time Warner reported adjusted earnings of 98 cents per share on revenue of $7.53 billion for the fourth quarter. Analysts had been expecting earnings of 93 cents per share on $7.6 billion in revenue. In the same quarter a year ago, Time Warner reported adjusted earnings of $1.14 per share on $7.6 billion in revenue.
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Key metrics from AOL’s earnings report
Diluted earnings per share were 72 cents for the fourth quarter. Ad revenue for the fourth quarter increased 8%, while revenue from subscriptions declined 5%. AOL saw revenue from Third Party Profits increase 16%, while AOL Properties display revenue fell 6% and search revenue from AOL Properties grew 6%. The company saw other revenue grow by 48%
AOL’s cost of revenues rose 32% year over year as traffic acquisition costs increased by $44 million.
Key metrics from Time Warner’s earnings report
For the fourth quarter, Time Warner saw a 1% decline in revenue due to falling revenue at Warner Bros. Adjusted earnings including restructuring and severance charges was $1.07 per share. Diluted earnings per share were 84 cents for the fourth quarter, compared to $1.01 per share in the previous quarter.
For the full year, Time Warner’s revenues rose 3% to $27.4 billion. Adjusted diluted earnings for the full year were $4.18, am 18% improvement year over year. Excluding a benefit from a tax adjustment and changes at Turner and restructuring charges, the company’s adjusted earnings would have been $4.05 per share. Diluted earnings for the full year were $4.41 per share.
Time Warner also provided guidance for the full year. Management expects to see adjusted diluted earnings of between $4.60 and $4.70 per share for 2015.