Time Warner saw operating income at Time Inc. drop 25% last year to $420 million, as the country’s largest magazine publisher was hit by declines in both advertising and newsstand sales sweeping through the industry.
Revenue also declined 6.6%, to $3.43 billion from $3.677 billion the previous year.
The focus of Time Warner on its television networks and film and TV production businesses, is the new adopted strategy after the company decided to spin off its entire Time Inc magazine group.
Declines in both advertising and newsstand sales, resulted in a drop of 25% in Time Inc’s income.
Meredith Corporation had been negotiating for a long period with Time Warner to merge Time Inc under Meredith’s magazines.
The deal with Meredith fell apart in part and Time Warner and Time Inc are taking two separate ways.