Shares in US media giant Time Warner (NYSE:TWX) recovered from an earlier bruising after printing disappointing fourth quarter earnings which had helped take the stock down a total of 30% in the past 12 months.
Time Warner shares opened down 11.3% at a new 52-week low after missing revenue targets. The media group's revenues were US$7.08bn. Analysts expected the top line to hit US$7.53bn.
But a combination of bullish forecasts, raising its dividend by 15%, and launching a new US$5bn stock buyback initiative lifted sentiment and helped shares pare losses.
The company projected adjusted earnings for this year of between US$5.30 and US$5.40 a share, which was ahead of analysts' expectations for around US$5.28.
But in context, to lose a third of market value within a year is a big deal, as investors fret that cable networks will lose audiences and advertising as alternative digital media platforms grow.
Shares were last seen down 1% at US$62.56, after starting the day at US$56.27.