Time Warner Looks to Movies and Real Estate in 2012

Speaking at the 22nd annual Citi Entertainment, Media & Telecommunications Conference in San Francisco, Time Warner (NYSE:TWX) CFO John Martin expressed confidence that 2012 could be a strong year for the company given its film release lineup and improving ad activity with NBA matches coming back on air and low levels of ad cancellations in the first quarter. The company expects to release The Dark Knight Rises, Dark Shadows, Gravity and The Hobbit among other films in 2012.

He provided insights into the company’s real estate moves, given that most leases of its office spaces would be up by 2017. TW currently spends about $300 million a year on office space in New York comprising 10 buildings and accommodating about 8,000 employees.

Rent is a major cost, more so because New York is so expensive. Planning for office space here on out would thus have to balance cost, quality and convenience of location, and this means considering even locations outside of New York.

“We are going to be looking to essentially get the best deal for future space and…look for space that is in a terrific environment for our employees to work in,” Martin said. He also emphasized “We can’t just limit it to New York City. We are going to be looking at other areas, too, because unfortunately the environment that we are operating in is we can’t be blind to cost of doing business. And operating in New York City is extremely expensive, so we are going to be aggressive and looking around in any number of places.”

Here’s how these media stocks are reacting to the news from the Citi Entertainment, Media & Telecommunications Conference today:

Time Warner Inc. (NYSE:TWX): TWX shares recently traded at $36.63, down $0.16, or 0.43%. They have traded in a 52-week range of $27.62 to $38.62. Volume today was 1,562,266 shares versus a 3-month average volume of 7,098,020 shares. The company’s trailing P/E is 13.91, while trailing earnings are $2.63 per share.

News Corp. (NASDAQ:NWSA): NWSA shares recently traded at $18.37, down $0.12, or 0.65%. They have traded in a 52-week range of $13.38 to $18.52. Volume today was 5,503,475 shares versus a 3-month average volume of 19,583,100 shares. The company’s trailing P/E is 18.03, while trailing earnings are $1.02 per share.

Comcast Corporation (NASDAQ:CMCSA): CMCSA shares recently traded at $24.80, down $0.15, or 0.6%. They have traded in a 52-week range of $19.19 to $27.16. Volume today was 3,822,539 shares versus a 3-month average volume of 17,727,700 shares. The company’s trailing P/E is 17.84, while trailing earnings are $1.39 per share.

Walt Disney Co. (NYSE:DIS): DIS shares recently traded at $39.94, up $0.44, or 1.11%. They have traded in a 52-week range of $28.19 to $44.34. Volume today was 4,788,233 shares versus a 3-month average volume of 11,346,100 shares. The company’s trailing P/E is 15.85, while trailing earnings are $2.52 per share.

CBS Corporation (NYSE:CBS): CBS shares recently traded at $27.97,. They have traded in a 52-week range of $17.99 to $29.68. Volume today was 1,602,492 shares versus a 3-month average volume of 7,768,910 shares. The company’s trailing P/E is 15.91, while trailing earnings are $1.76 per share.

AOL, Inc. (NYSE:AOL): AOL shares recently traded at $16.14, up $0.68, or 4.4%. They have traded in a 52-week range of $10.06 to $24.91. Volume today was 623,018 shares versus a 3-month average volume of 1,566,410 shares. The company’s trailing P/E is 30.62, while trailing earnings are $0.53 per share.

To contact the reporter on this story: Brooke Edge at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com