Time Warner Reports Strong 3Q

Time Warner Inc. today reported financial results for its third quarter ended September 30, 2016.

Chairman and Chief Executive Officer Jeff Bewkes said: “We had a strong third quarter, which keeps us on track to exceed our original 2016 outlook and underscores our leadership in creating and distributing the very best content.

Jeff Bewkes

In television, HBO took home more Primetime Emmy Awards than any other network for the 15th consecutive year and Time Warner’s divisions won a total of 40 Emmys, more than any other company. CNN’s standout election coverage made it the #1 news network in primetime among adults 18-49 for the fourth consecutive quarter and Turner’s momentum doesn’t stop there. Year-to-date, TBS, TNT and Adult Swim are three of the top five adsupported cable networks in primetime among adults 18-49. In film, Warner Bros. had a strong quarter led by Suicide Squad and has the #1 release of the fall in Sully, while anticipation is off the charts for J.K. Rowling’s Fantastic Beasts and Where to Find Them, which hits the big screen on November 18.”

Mr. Bewkes continued: “The agreement we announced on October 22 to be acquired by AT&T Inc. represents a great outcome for our shareholders and an excellent opportunity to drive long-term value well into the future. Combining with AT&T is the natural next step in the evolution of our business and allows us to significantly accelerate our most important strategies.”

Reuters reports shares of the company, which owns HBO, CNN, Cartoon Network and the Warner Bros film studio, climbed 2 percent to $90 in premarket trading.

Dallas-based AT&T said last month it would buy Time Warner for $85.4 billion in a bold move to acquire content. AT&T's offer valued Time Warner at $107.50 per share.

Revenue from Warner Bros, the company's biggest unit by revenue, rose 6.7 percent to $3.4 billion in the third quarter ended Sept. 30, Time Warner said.

Until "Suicide Squad", which hit movie screens in early August, Warner Bros has had few hit releases in recent quarters. As of Oct. 30, "Suicide Squad" had grossed about $325 million, according to Box Office Mojo.

Revenue at Time Warner's HBO unit, home to "Game of Thrones" and "True Detective", rose 4.3 percent to $1.43 billion.

HBO faces stiff competition from streaming video services such as Netflix (NFLX.O) and Amazon.com Inc's (AMZN.O) Prime service.

Time Warner took a 10 percent stake in video streaming site Hulu in August, setting its sights on the web TV market.

The company's net income rose to $1.47 billion, or $1.86 per share, in the third quarter from $1.04 billion, or $1.26 per share, a year earlier.

According to Thomson Reuters I/B/E/S, Time Warner earned $1.55 per share, excluding a tax benefit of 28 cents per share and other items, beating the average analyst estimate of $1.37.

Revenue rose 9.2 percent to $7.17 billion.

Analysts on an average had expected revenue of $6.98 billion.