NEW YORK -- Time Warner Inc. (NYSE:TWX) today reported financial results for its second quarter ended June 30, 2010. Chairman and Chief Executive Officer Jeff Bewkes said: "Time Warner delivered another quarter of strong financial and operating performance. Our revenue increased at its highest rate in two years, driving 15% growth in Adjusted Operating Income."

Mr. Bewkes continued: "Our investments in high-quality content across the company continue to pay off. Turner's original programming strategy contributed to the quarter's strong advertising growth and helped to generate pricing gains at the high end of the recent 2010-2011 upfront. HBO achieved impressive audience growth for its returning shows, and it has more original series in development than at any time in its history. Last week, Warner Bros. became the only studio in history whose films surpassed $1 billion at the domestic box office for ten straight years, while its TV production business extended its streak as the #1 provider of broadcast network programming. In addition, Time Inc. widened its lead in overall domestic print advertising share through the first six months of 2010. At the same time, we strengthened our balance sheet and returned to stockholders more than $1.5 billion in dividends and share repurchases for the year through June."

Company Results

In the quarter, Revenues grew 8% from the same period in 2009 to $6.4 billion, reflecting increases at the Networks and Filmed Entertainment segments. Adjusted Operating Income rose 15% to $1.2 billion, due to growth at the Networks and Publishing segments. Adjusted Operating Income margins reached 19% versus 18% in last year's second quarter. Operating Income increased 19% to $1.2 billion, while Operating Income margins were 19% compared to 17% in the prior year quarter.

The Company posted Adjusted Diluted Income per Common Share from Continuing Operations ("Adjusted EPS") of $0.50 versus $0.37 in the prior year quarter. Diluted Income per Common Share from Continuing Operations was $0.49 for the three months ended June 30, 2010, compared to $0.36 in last year's second quarter.

For the first six months of 2010, Cash Provided by Operations from Continuing Operations reached $1.4 billion, and Free Cash Flow totaled $1.2 billion. As of June 30, 2010, Net Debt increased to $12.3 billion from $11.5 billion at the end of 2009, due mainly to share repurchases and dividends, as well as investment and acquisition spending, offset by the generation of Free Cash Flow.

Refer to "Use of Non-GAAP Financial Measures" in this release for a discussion of the non-GAAP financial measures used in this release and the reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

FILMED ENTERTAINMENT (Warner Bros.)

Revenues increased 8% ($183 million) to $2.5 billion, led by stronger theatrical performances, including Clash of the Titans and Sex and the City 2. Also contributing to this growth were higher television license fees, benefitting from a greater number of new series, timing of deliveries and the TNT availability of The Closer, as well as improved video games revenues, driven by the release of LEGO Harry Potter: Years 1-4.

Adjusted Operating Income declined 2% ($3 million) to $173 million, as higher revenues and lower restructuring costs ($28 million) were more than offset by higher theatrical and television film costs, as well as print and advertising costs. The prior year quarter benefitted from the effect of improved home video catalog returns of approximately $30 million. Operating Income grew 21% ($30 million) to $173 million. Last year's second quarter included a $33 million loss on the sale of Warner Bros.' Italian cinema assets.

 

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stephensommers.pngSource: TheWrap

Stephen Sommers will reportedly return to helm a sequel to last summer's G.I. Joe: The Rise of Cobra. The first installment received a wave of bad reviews, but fans didn't care. The Paramount release raked in more than $300 million worldwide. There is no official word regarding which cast members will return.

Sommers has experience launching franchises thanks to The Mummy films, so this is not new territory. That franchise even launched a spin-off film in the for of The Scorpion King. There are plenty of characters in G.I. Joe that would be able to do the same thing.

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Beverly Hills, CA -- Tom Sherak was re-elected president of the Academy of Motion Picture Arts and Sciences tonight (8/3) by the organization's Board of Governors. This will be his second consecutive one-year term in the office.

Sherak is beginning his eighth year as a governor representing the Executives Branch. He had previously also served as treasurer for the Academy.

In addition, Public Relations Branch governor and past Academy president Sid Ganis was elected first vice president; Writers Branch governor James L. Brooks was elected to one vice president post and Phil Robinson, also from the Writers Branch, was re-elected to a vice president post; Producers Branch governor Hawk Koch was re-elected treasurer; and Actors Branch governor Annette Bening was elected secretary.

These will be the first officer stints for Brooks and Bening.

Sherak, a marketing, distribution and production executive with more than four decades of experience in the motion picture industry, is currently a consultant for Marvel Studios and Relativity Media.

Previously, Sherak was a partner at Revolution Studios where he oversaw the release of more than 30 films including "Black Hawk Down," "Anger Management," "Rent," and "Across the Universe."

Prior to joining Revolution, Sherak was chairman of Twentieth Century Fox Domestic Film Group and served as senior executive vice president of Fox Filmed Entertainment. Previously, he held various positions at Fox, including senior executive vice president, where he oversaw the distribution and post-production of "Mrs. Doubtfire," "Speed," and "Independence Day," among others.

In 1990 Sherak was named executive vice president of Twentieth Century Fox. Prior to that he was president of domestic distribution and marketing for Fox, where he launched such films as "Romancing the Stone," " Aliens," "Wall Street," "Die Hard" and "Working Girl." He began his career in the industry at Paramount Pictures in 1970.

Academy board members serve three-year terms, while officers serve one-year terms, with a maximum of four consecutive terms in any one office.

 

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Source: TheWrap

Will Ferrell is reportedly set to star in a Spanish-language comedy titled Casa de mi padre (House of my Father). The film will be released with English subtitles. No director has been named yet.

The Other Guys, which stars Ferrell and Mark Wahlberg, is set to open this weekend. The comedy looks poised to be the film that will end Inception's dominance after three weekends.

 

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SEATTLE -- The treasured Seattle Cinerama Theatre is getting a 21st Century technical upgrade with state-of-the-art digital sound and pictures along with a refurbishment of the classic, mid-century, wide-screen theater.

The two-month project will ensure that Cinerama remains a vital piece of Seattle's entertainment experience, where movie goers will be able to see a wide diversity of programming, from the latest 3-D blockbusters to indie films on the festival circuit.

In 1998, philanthropist and investor Paul G. Allen saved the Cinerama from a fate as a parking lot, dinner theater or rock climbing gym, and restored the massive, curved screen used for special presentations of Cinerama and 70mm wide-screen movies. It is one of only three theaters in the world that can show original Cinerama movies.

Allen and Cinerama have been strong supporters of independent films. Use of the theater has been donated for numerous festivals, including the Seattle International Film Festival, the Langston Hughes African American Film Festival, the National Film Festival for Talented Youth and the Seattle Human Rights Film Festival.

The upgraded Cinerama will host even more festivals and community events, according to Lyn Tangen, senior director of Corporate Communications at Allen's Vulcan Inc.

Cinerama will close Aug. 30 for two months for installation of cutting-edge digital sound and projection system and the remodeling needed after a decade of heavy use.

When Cinerama reopens in the fall it will be operated by a new management company. Allen has hired Greg Wood, owner and operator of Portland's Roseway Theater, to operate Cinerama. Wood recently renovated and reinvented the Roseway, preserving its original art-deco decor and installing the newest in digital projection and sound systems.

Wood had extensive theater experience when he purchased the Roseway in 2008, a beautiful single-screen theater that has won rave reviews and quickly developed a dedicated following among Portlanders.

"Greg is a great fit with Cinerama and our emphasis on local relevance, progressive, independent thinking, and attention to detail," Vulcan's Tangen said. "He understands the importance of Cinerama to the community."

Tangen also thanked AMC Entertainment Inc. for its years of quality management of the iconic theater. The company will close out its role Aug. 29.

There are few single-screen theaters that still provide the array of movie choices available at Cinerama. Going forward, Wood and Vulcan will build even closer relationships with the public as well as the many community groups around Seattle that will come to Cinerama for fund-raisers or other special events.

"It's an amazing opportunity to be taking the helm of one of the coolest theaters on the planet," Wood said. "We're all excited to see these improvements happen. It will be a wonderful addition to the future chapters of Cinerama history."

Seattle movie buffs should watch Cinerama.com to be among the first to learn about plans for the grand reopening and to see what will hit the new, big screen first.

 

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