Revenue rose 7% y-o-y to $11.88 billion in-line with consensus estimates. Adjusted operating income before depreciation and amortization rose 18% to $2.9 billion. Operating income rose 37% to $2.2 billion. Diluted EPS (before discontinued operations and cumulative effect of accounting change) was $0.29 vs $0.24 in Q4 2004, and above consensus estimate of $0.22.
FY 2005 Results:
Cash from operations was $5.0 billion. Free cash flow was $4.4 billion. As of December 31, net debt was $16.1 billion (flat compared to the beginning of 2005).
Update on $12.5 Billion Stock Repurchase Program:
Through January 31, 2006, the Company has repurchased approximately 167 million shares of common stock for approximately $3.0 billion.
TWX expects its 2006 full-year growth rate in adjusted operating income before depreciation and amortization to be in the high-single digits, off a base of $10.3 billion in 2005 (restated to reflect the impact of expensing stock options). TWX expects to convert 35% - 45% of its 2006 adjusted operating income before depreciation and amortization into free cash flow.