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The
company, whose fourth-quarter profit beat expectations, also
raised its dividend to 40.25 cents per share from 35 cents.
However, revenue slipped 6 percent and came in shy of estimates,
hurt by a lack of hit movie releases from Warner Bros and a
strong dollar.
The company's shares were down 3.5 percent in premarket trading
on Wednesday.
Time Warner said it expected adjusted earnings of $5.30-$5.40
per share for 2016. Analysts on average were expecting $5.26,
according to Thomson Reuters I/B/E/S.
The company had cut its adjusted profit forecast in November to
$5.25 per share from "close to $6", citing a strong dollar.
Total revenue fell to $7.08 billion in the fourth quarter ended
Dec. 31 from $7.53 billion.
Revenue at Warner Bros fell 13 percent to $3.3 billion. In the
year-earlier quarter, the studio released hit movies such as
"The Hobbit: The Battle of the Five Armies", "Interstellar" and
"Annabelle".
The $5 billion share buyback was effective Jan. 1 and includes
the amount remaining under a prior authorization, the company
said.
Net income attributable to Time Warner shareholders rose to $857
million, or $1.06 per share, from $718 million, or 84 cents per
share.
Excluding items, the company earned $1.06 per share.
Analysts on average had expected a profit of $1.01 per share and
revenue of $7.53 billion.
(Reporting by Abhirup Roy in Bengaluru; Editing by Don
Sebastian)
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