SHERLOCK HOLMES REAPS BUMPER HARVEST FOR TIME WARNER

Time Warner has reported fourth quarter profits, thanks to the hit films Sherlock Holmes and The Hangover.

The move marks a return to profit for the company in its first results since the split from AOL last year.

Time Warner is now focused on movies and TV. Net income for the newly slimmed-down company was $627m (£387m).

That compares with a $16bn loss in the last three months of 2008 thanks to write-downs on the value of its AOL and cable assets.

Also reporting on Wednesday was the much smaller AOL.

Its fourth quarter results showed a similar pattern to Time Warner - net income was $1.4m after a loss of $1.9bn the year before, which resulted from costs relating to the short-lived marriage.