Time Warner sees growth after Harry Potter movies

NEW YORK — Time Warner Inc. got a boost from its movie studio and cable TV networks in the last three months of the year, and the company expects growth to continue in 2012 even with the end of its lucrative Harry Potter franchise.

Fourth-quarter net income grew slightly as revenue increased 5 percent. Adjusted earnings for the quarter and the growth forecast for this year topped Wall Street's expectations.

Time Warner, which owns Warner Bros., HBO, CNN, Time and People magazines and other media properties, also raised its dividend by 11 percent and said it plans to expand a stock buyback program.

Its stock rose 12 cents to $38.22 in afternoon trading after the results were announced Wednesday. Over the past 52 weeks, the stock price has ranged from $27.62 to $38.62. The stock briefly hit a new high at $39.23 in trading Wednesday morning.

Time Warner released "Harry Potter and the Deathly Hallows: Part 2" on home video on Nov. 11, contributing to higher revenue at the Warner Bros. studio.

That growth came even as the quarter was compared with a period that included the November 2010 theatrical release of the next-to-last installment of the series. That movie, "Harry Potter and the Deathly Hallows: Part 1," went on to sell nearly $950 million in box office tickets worldwide.

With the series ending, the company needs new ways to sustain growth. Time Warner said midnight IMAX screenings of the new Batman movie in July were already selling out. The company was also expecting heavy interest in the first of two "Hobbit" movies and "Dark Shadows" from director Tim Burton.

The company said growth in adjusted earnings should be in the low double-digit percentages this year. Adjusted income was $2.89 per share in 2011, meaning it could range from $3.18 to $3.32 in 2012. Analysts were expecting $3.16.

And Harry Potter remains alive through theme parks. Comcast Corp.'s Universal Studios is building a Harry Potter attraction inside its existing Hollywood theme park and expanding one in Orlando, Fla. Time Warner expects significant increases in licensing fees starting in 2014.

For the fourth quarter of 2011, Time Warner's net income rose to $773 million, or 76 cents per share, compared with $769 million, or 68 cents per share, a year earlier.

Adjusted for one-time items, the company earned 94 cents per share. That beat Wall Street's expectations of 87 cents per share, according to a survey by FactSet.