Time Warner Spins Off Time Inc.

Posted on 5/11/2014 by Jim Pickerell | Printable Version | Comments (0)

Time Warner will spin-off Time Inc. on May 23, 2014. Shareholders of record at 5:00 p.m. on that date will receive one share of Time Inc. common stock for every eight shares of Time Warner common stock.

Chairman and Chief Executive of Time Inc, Joe Rupp, told shareholders, “We are one of the largest branded media companies in the world, reaching more than 130 million people each month across print and digital platforms. Our category-leading portfolio includes People, Sports Illustrated, Time and InStyle.”

Time Inc. had revenue of $1.807B (flat Y/Y) last year and net income of $201M (-23.6% Y/Y). The following chart shows comparative figures for the last 5 years.

    2013   2012   2011   2010   2009
     Advertising   $1,807   $1,807   $1,923   $1,935   $1,878
     Circulation   $1,129   $1,210   $1,271   $1,291   $1,324
     Other   $488   $407   $483   $449   $534
Total Revenues   $3,354   $3,436   $3,677   $3,675   $3,736
Operating Expenses   $3,024   $3,016   $3,114   $3,160   $3,490
Operating Income   $330   $420   $563   $515   $246
New Income   $201   $263   $368   $312   $147

As of December 31, 2013, Time Inc. published 23 magazines in print in the United States, including People, Sports Illustrated, InStyle, Time, Real Simple, Southern Living, Entertainment Weekly and Fortune, and over 70 magazines outside the United States, primarily through IPC in the U.K. and GEX in Mexico. Time Inc. also licensed more than 50 editions of its magazines for print or digital distribution in over 30 countries.

Magazine publishing, including websites that share brands with Time’s magazines, accounted for approximately 82% of total revenues in 2013. The following chart lists 19 of the major magazine titles as of December 31, 2013, as well as circulation, related websites and related magazine titles for each:

Magazine title Rate base Frequency Category Related websites
People 3,475,000 52 Celebrity Weekly People.com
Time 3,250,000 48 Weekly Newsmagazines Time.com
Sports Illustrated 3,000,000 52 Sports: General SI.com
Southern Living 2,800,000 12 Regional SouthernLiving.com
Real Simple 1,975,000 12 Womens Lifestyle RealSimple.com
Cooking Light 1,775,000 11 Epicurean MyRecipes.com
Entertainment Weekly 1,725,000 44 Entertainment EW.com
Money 1,700,000 11 Personal Finance Money.com
InStyle 1,700,000 13 Womens Fashion InStyle.com
All You 1,500,000 12 Womens Service AllYou.com
Golf 1,400,000 12 Sports: Golf Golf.com
Health 1,350,000 10 Womens Health & Fitness Health.com
Sunset 1,250,000 12 Regional Sunset.com
What’s On TV (U.K.) 1,051,129 51 Entertainment WhatsOnTV.co.uk
Essence 1,050,000 12 African American Essence.com
This Old House 950,000 10 Shelter ThisOldHouse.com
Travel + Leisure 950,000 12 Travel TravelandLeisure.com
Food & Wine 925,000 12 Epicurean FoodandWine.com
Fortune 830,000 18 Business: Corporate Fortune.com

For more details about the new company check out the SEC's Preliminary Information Statement of Time, Inc.

Copyright © 2014 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-461-7627, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  


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