Time Warner, has announced that 4th quarter profit rose more than 20% on strong growth in advanced cable services and movies. Their shares nudged up a little.
Profit increased to $1.4 billion, from $1.13 billion, a year earlier, beating analysts' forecasts. Revenue rose 7% to $11.9bn.
Time Warner also forecast low digit growth for 2006. The question is are they being conservative and will they actually turn in double digit growth. They will probably need to to stave off the growing challenge from Carl Icahn.
He and his new team are blistering for a proxy fight at the next AGM in May. And they seem to have secured a major Dubai investor who plans to buy up Time Warner stock and retain Icahn as an advisor. Next week Icahn's team will reveal their plan for Time Warner going forwards.
So, Parsons has something to smile about given these results and the chunky bonus he has just earned from delivering them (fair enough).
Time Warner Cable performed particularly well, but as always the thorn in his side is AOL and Time Warner's seemingly immovable share price. This has to be the make or break year for both these two challenges. If Parsons doesn't fix them this could even be his last year at Time Warner.
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