For the year 2007, revenue rose 6% to $46.5 billion from a year ago and operating earnings increased 23% to $8.9 billion and diluted earnings per share from continuing operations of $1.08 per share compared to $1.20 in 2006. The net impact of non-recurring items was to increase the current and prior year results by $0.12 and $0.40 per diluted common share, respectively.

Net Debt totaled $35.6 billion, up $2.2 billion from $33.4 billion at the end of 2006, due primarily to the Company’s stock repurchase programs.

AOL unit, online service and content provider, revenue declined in the fourth quarter by 30% to $1.251 billion and for the year fell 20% to $5.2 billion.

During the fourth quarter, AOL had 109 million average monthly domestic unique visitors and 49 billion domestic page views, according to comScore Media Metrix, which translates into 150 average monthly domestic page views per unique visitor.

As of December 31, 2007, the AOL service had 9.3 million U.S. access subscribers, a decline of 740,000 from the prior quarter and 3.8 million from the year-ago quarter, reflecting subscriber losses due to AOL’s strategy to prioritize its advertising business.

Time Warner expects its 2008 full-year growth rate in adjusted operating income before depreciation and amortization to be in the range of 7% to 9%, from $12.9 billion in 2007.

In addition, annual free cash flow will be at or above $3.6 billion and 2008 full-year earnings per diluted share from continuing operations to be in the range of $1.07 to $1.11.


Disney Earnings

Disney (DIS: chart) rose 5.7% or $1.71 to $31.76 after reporting earnings that surprised investors.

The Walt Disney Company reported first quarter revenue rise of 9% to $10.45 billion from a year ago. Net income from continuing operations in the quarter ended Dec 29, 2007 fell 25% from a year ago to $1.25 billion from $1.75 billion a year ago and diluted earnings per share declined to 63 cents per share from 79 cents a year ago.

Earnings in the prior-year quarter, which included gains on sales of our interests in E! Entertainment and Us Weekly, income from the discontinued operations of the ABC Radio business, and an equity-based compensation plan modification charge, were $0.79. Excluding these items, EPS increased 29% to $0.63 from $0.49 in the prior-year quarter.

Media Networks revenues for the quarter increased 10% to $4.2 billion and segment operating income increased 28% to $908 million. Operating income at Cable Networks increased $125 million to $586 million for the quarter driven by increases at ABC Family Channel and the domestic Disney Channels. Growth at ABC Family Channel was due to the absence of programming costs for Major League Baseball and higher affiliate and advertising revenue, both of which were driven by higher rates.

Parks and Resorts revenues for the quarter increased 11% to $2.8 billion and segment operating income increased 25% to $505 million. Operating income growth at Disneyland Resort Paris was primarily due to increased attendance, guest spending, hotel occupancy and real estate sales. Increased guest spending was driven by higher average daily room rates and increased food and beverage spending.

Studio Entertainment segment operating income for the quarter decreased 15% to $514 million while revenues were essentially flat at $2.6 billion.


Asian Markets Update

Asian markets closed sharply lower after worries related to the U.S. service sector slowdown dragged the indexes in the region.

In Tokyo Nikkei 225 Index closed lower 646.26 or 4.70% to 13,099.24, in Hong Kong Hang Seng index decreased 1339.24 or 5.40% closed to 23,469.46, in Australia ASX 200 index lower 183.50 or 3.17% to close 5,609.40.

Thailand SET index closed lower 13.05 or 1.62% to 794.63, and Indonesia JSE Index edged decreased 65.16 or 2.41% to 2,639.09. Sensex index in India decreased 523.70 or 2.81% to 18,139.49. Market of South Korea was closed today.