by Christopher Freeburn | August 8, 2013 11:36 am
During a conference call with analysts, Time Warner (TWX) CEO Jeff Bewkes indicated that the media company will take more time to separate its magazine publishing unit.
Bewkes said that Time Inc. will be spun-off as a publicly traded company in early 2014. Time Warner had previously indicated plans to separate the publishing unit before the end of this year, Reuters noted.
The delay is intended to give Time Inc.’s incoming CEO Joe Ripp time to develop a business strategy. Ripp will take the reins at Time Inc. in September. Bewkes noted that the company didn’t want to move to fast, adding “it is prudent to give [Ripp] some time to further refine Time Inc’s strategic direction” prior to the spin-off. Time Inc. publishes a number of popular magazines, including Time, People and Sports Illustrated.
Time Warner posted a second-quarter profit of $771 million, up from $412 million during the same period last year. Adjusted EPS of 83 cents easily topped the 76 cents that Wall Street had expected. The company also increased its earnings guidance for the year, forecasting that its profit will show mid-teens percentage growth. That was up from earlier predictions of low double digits earnings growth.
The company announced plans to spin off its magazine unit in March.
Shares of Time Warner slipped fractionally in Thursday morning trading.
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