Time Warner posts profit in 4th quarter

February 4, 2010 at 12:00a.m.

LOS ANGELES (AP) — Time Warner Inc. made a profit in the fourth quarter despite a decline in advertising revenue as the media company saw revenue gains in its cable channels such as HBO and its Warner Bros. movie studio, the one behind the “Harry Potter” franchise.

CEO Jeff Bewkes also played down the possibility of a video-content deal for Apple Inc.’s new iPad computer, as he said device makers are “not particularly powerful” ways for the company to get movies and TV shows to consumers.

In a conference call with analysts, Bewkes favored adding value to cable-TV subscribers who pay for such premium channels as HBO, and allowing them to watch programs online on any device for no extra fee, with a service called “HBO Go.”

Companies such as Apple “are not distributors” but “device manufacturers,” Bewkes said. “If they are not distributors, they are not particularly powerful in the chain.”

However, he did hold out hope that Time Warner’s magazine business could be helped by devices that serve as electronic readers. The company is part of a joint venture that is developing new ways of presenting publications digitally with color, video and games.