Time Magazine 2014 Annual Report Download - page 3

1
A Message from the Chairman and CEO
Time Warner has a rich history of both extraordinary
creativity and business-model innovation, and
2014 was another great year for both, which led to
strong financial performance and returns for our
shareholders.
In many ways, 2014 was a milestone year for us. We spun
o our publishing business, completing our transition to a
company solely focused on creating and distributing the
best video content across television, film, and new platforms;
successfully managed an unsolicited takeover oer that was
not in our shareholders’ best interests; and ushered in a new
era for our industries when in mid-October we announced
our intention to introduce a stand-alone, broadband-delivered
version of HBO.
Although the pace of change in our businesses is dramatic,
I’ve never been more confident about the strength of our lead
position in an increasingly, and inevitably, on-demand world.
As the “new” Time Warner, we are today more nimble,
collaborative, and — with a new generation of leadership in
place at our divisions — focused on sustained success.
Financially, 2014 was a stellar year for us. We increased
Adjusted Earnings Per Share by a robust 18% — the sixth
consecutive year of at least high teens growth. We also grew
Free Cash Flow by 12%, which allowed us to return $6.6 billion
to shareholders through dividends and share repurchases
over the course of the year. All that translated into the strong
performance of our stock and total shareholder returns at the
very top of our industry in 2014. Continuing our commitment to
direct returns to shareholders, we raised our dividend in 2015
by 10%, marking the sixth consecutive year of double-digit
increases. And as we said at our investor event last October,
we believe we can continue to deliver very attractive growth
in the years to come.
In a world of exploding media choices and technologies for
consumers, that performance is a testament to the leadership
position of our operating businesses — Warner Bros., Turner
Broadcasting, and Home Box Oce. Fueled by the passion,
dedication, and ingenuity of our employees, we’re working
every day to tell the world’s best stories and to help shape the
future of media. And as our company and industries evolve,
we continue to adhere to the strategy that has guided us
so well:
• Investing in, and being home to, the best content
• Leading in digital innovation
• Expanding our international presence
• Operating and allocating capital eciently
The following pages give you more details and highlights on
how we’ve successfully translated this strategy into actions
across our company, and I encourage you to take a look.
The greatest source of my confidence in our future is the
caliber and integrity of Time Warner’s people, who make
our company the preferred home for the very best talent
and ideas. In addition to passion and commitment to our
business goals, we also share a common culture in which
our employees care deeply about the communities where
we work and live, and strive to make a positive impact on
them and indeed the world. And, as an employer, we remain
committed to fostering a workforce that reflects our global
audience and allows distinct and diverse voices to flourish.
So on behalf of all of us at Time Warner, I want to thank you
for the confidence and trust you place in us.
Je Bewkes
Chairman and CEO