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Earnings Calls: 
Time Warner Earnings Call, Third Quarter 2008
Author: Maclintosh Kuhlengisa
123jump.com
Last Update: 7:39 AM ET November 14 2008

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The media and entertainment firm reported a modest rise in revenues to $11.7 billion reflecting growth in subscriptions and a decline in advertising as earnings were flat at $1.1 billion or 30 cents a share despite lower interest expenses.


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In film is what we do external financing on, and the mix that we have between wholly owned films, joint ventures and distribution deals, we don’t see any issue or change in how we finance films.

Anthony DiClemente (Barclays Capital): What were the number of world wide DVD units sold in the quarter?

Jeffrey L. Bewkes: Essentially the industry is down a little bit but we are up. The U.S. consumer spending on home video is $13.5 billion and it was down about 2.5% year to date versus the prior year and consumer spending at Warner Home Video Software was $2.7 billion an increased 7%.

Generally, and this goes beyond DVD sales to movie tickets, those kinds of home entertainment options, movie tickets particularly, seems to be fairly resistant to economic downturns. Doesn’t necessarily mean there totally resistant but relatively so and so that would be the general view.

Imran Khan (JP Morgan): On AOL, what other areas of cost saving do you see from the business if the advertising market remains soft?

Jeffrey L. Bewkes: If you look at the access business where the rate of the client and revenues is actually moderating, access already has very high margins and is a variable cost component, so the variable costs will come down, marketing will continue to down but the rate of changing cost there is probably going to become less significant.

And on the audience side of the business, it’s going to be based on active management decisions nothing that I’m prepared to go into a lot of detail here and as we think we about how to decide the business and grow the business accordingly.
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