The Media Drop

Time Warner’s second quarter of 2004 might not have been as successful as the same period a year ago, but it exceeded expectations of analysts, who predicted around 15 cents/share profit. On Wednesday, the media conglomerate posted a $777 million profit, or 19 cents per share. In 2003, Time Warner had an exceptional second quarter, reporting $1.06 billion in net income - although the Associated Press reports in the earnings coverage that the prior year’s gains were assisted by investment profits and a settlement with Microsoft. That settlement, regarding browser antitrust issues, totaled $750 million - significantly impacting Time Warner’s financials during that quarter.