Time Warner Inc (TWX)’s TV Growth Opportunity

Incidentally, Time Warner Inc (NYSE:TWX)’s fourth initiative for 2013 is to remove costs from the operating model. It noted IT, real estate, and overhead expenses as examples. In tandem with a slate of upcoming films and programming that should support profitability, it ought to be in store for a better year in 2013.

Speaking of the film schedule, it will release The Great Gatsby and The Hangover Part III during the spring, before embarking on the distribution of a solid group of summer theatrical films.

The conclusion is that Time Warner’s TV and film unit may well be a contributor to profit gains this year, rather than a detriment. It will continue to repurchase its own common stock at an aggressive rate, likely allowing for improved share earnings. Given a favorable ad environment, TWX shares, valued at a below-industry average P/E, hold appeal at this time.

The article Time Warner’s TV Growth Opportunity originally appeared on Fool.com and is written by Damon Churchwell.

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