Wednesday, August 7, 2013

Time Warner Reports 2Q Earnings Jump 87 Percent

Time Warner Inc. reports second-quarter earnings jumped 87%  as hits like "Man of Steel" helped drive strength at the media conglomerate's film and TV businesses, while Turner and HBO continued to deliver strong results.

According to Marketwatch, the company said it is raising its view for the year, now expecting adjusted per-share earnings to grow in the mid-teens off a base of $3.24. Time Warner's May view was for growth in the low double digits off an adjusted per-share earnings base of $3.28.

TV businesses faces big challenges from the rise of online-video outlets and near-saturation of the pay-television market, which has prompted concerns that some pay TV subscribers could disconnect.

Time Warner reported that revenue from its networks arm, which includes Turner Broadcasting and HBO, was up 6.8% to $3.84 billion for the quarter.

The growth was helped by stronger subscription revenue, driven by higher domestic rates and international growth, as well as a double-digit increase in advertising revenue, driven by higher pricing, strong demand for the NBA Playoffs on TNT, and the timing of the 2013 NCAA Division I Men's Basketball National Championship tournament. Content revenue also increased, which Time Warner said was due to higher sales of original programming by HBO.

The film and TV entertainment division reported a 13% jump in revenue, to $2.94 billion, led by theatrical releases like "Man of Steel," "The Hangover Part III" and "The Great Gatsby," as well as an increase in international television syndication and subscription video-on-demand revenue.

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