Time Warner (TWX: chart) reported fourth quarter earnings and provided outlook for 2008. Time Warner stock (TWX: chart) rose 4.6% or 70 cents to $16.10.

Fourth-quarter revenues were up 2% from a year ago to $12.6 billion on increases at the cable and filmed entertainment segments. Adjusted operating income before depreciation and amortization climbed 16% to $3.5 billion, benefiting from increases at the cable, filmed Entertainment, AOL and Publishing segments. Operating Income grew 12% to $2.3 billion.

Diluted earnings per share fell to $0.28 from $0.43 a year ago. The current and prior year amounts included certain items affecting comparability resulting in a decrease of $0.01 per diluted common share and to increase the prior year results by $0.21 per diluted common share.

For the year 2007, revenue rose 6% to $46.5 billion from a year ago and operating earnings increased 23% to $8.9 billion and diluted earnings per share from continuing operations of $1.08 per share compared to $1.20 in 2006. The net impact of non-recurring items was to increase the current and prior year results by $0.12 and $0.40 per diluted common share, respectively.

Net Debt totaled $35.6 billion, up $2.2 billion from $33.4 billion at the end of 2006, due primarily to the Company''s stock repurchase programs.

AOL unit, online service and content provider, revenue declined in the fourth quarter by 30% to $1.251 billion and for the year fell 20% to $5.2 billion.

During the fourth quarter, AOL had 109 million average monthly domestic unique visitors and 49 billion domestic page views, according to comScore Media Metrix, which translates into 150 average monthly domestic page views per unique visitor.

As of December 31, 2007, the AOL service had 9.3 million U.S. access subscribers, a decline of 740,000 from the prior quarter and 3.8 million from the year-ago quarter, reflecting subscriber losses due to AOL''s strategy to prioritize its advertising business.

Time Warner expects its 2008 full-year growth rate in adjusted operating income before depreciation and amortization to be in the range of 7% to 9%, from $12.9 billion in 2007.

In addition, annual free cash flow will be at or above $3.6 billion and 2008 full-year earnings per diluted share from continuing operations to be in the range of $1.07 to $1.11.