Time Warner sees $25 bln Q4 charge

By Yinka Adegoke

NEW YORK (Reuters) - Time Warner (TWX.N) expects a fourth quarter loss due to a $25 billion (16.5 billion pound)charge, largely related to the depressed value of its cable assets, and said advertising at its AOL and publishing units were weaker than expected.

Shares in the media conglomerate fell more than 6 percent on Wednesday as investors feared the fourth-quarter results could indicate a tougher media market in the coming year.

"The operating performance of the business seems a little weaker than expected in the fourth quarter and could indicate weakness in 2009," said Chris Marangi, an analyst at Gamco Investors, which holds Time Warner Inc and Time Warner Cable stock.

Time Warner expects to post a net loss in 2008, compared to its previous forecast of earnings per share in the range of $1.04 to $1.07. Analysts polled by Reuters Estimates had forecast net profit of $1.07 before one-time items.

In the fourth quarter, about $15 billion of the charges are for its Time Warner Cable (TWC.N) unit, which Time Warner expects to split off by the end of the current quarter. Both companies are due to report results on February 4.

Time Warner Inc is also taking charges related to its Time Inc and AOL units.

Time Warner, which also owns CNN cable network and Warner Bros movie studios, lowered its fourth quarter outlook for adjusted operating income before depreciation and amortisation (OIBDA) due to one-time charges and the weaker-than-expected advertising market.

It expects OIBDA, a measure of cash flow the company prefers, will rise about 1 percent for the full year from $12.9 billion in 2007. That is down from a previous forecast for 5 percent growth.