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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