Time Warner income down, but beats estimates
(AP) NEW YORK – Time Warner (TWX) said Wednesday that its net income fell 33 percent in the second quarter as its Warner Bros. movie studio had weaker releases compared with a year ago.
The blockbuster Batman movie “The Dark Knight Rises” didn’t open in theaters until the quarter ended. in the second quarter last year, Time Warner Inc. had “The Hangover Part II” in theaters and the next-to-last Harry Potter movie on home video.
Net income was $430 million, or 44 cents per share, compared with $638 million, or 59 cents per share, a year earlier. Revenue fell 4 percent to $6.7 billion. That’s slightly below analysts’ expectations of $6.95 billion, according to FactSet.
Adjusted for one-time items, earnings were a penny above expectations at 59 cents per share.
Revenue from Time Warner’s television networks grew 4 percent to $3.6 billion, in part from higher rates paid by cable and satellite TV companies to carry CNN, TBS and other channels. Time Warner also saw growth in HBO subscribers and benefited from higher ad rates and an increase in the number of National Basketball Association games shown on its channels. But ad revenue fell at its domestic news networks.
At Warner Bros., revenue fell 8 percent to $2.6 billion because last year’s quarter had strong releases. The declines were partly offset by licensing revenue from cable reruns of “The Mentalist.”
Revenue at the Time Inc. magazine division fell 9 percent to $858 million, reflecting declines in both subscriptions and advertising.
Time Warner also reaffirmed its outlook for the year. The company said percentage growth in adjusted income should be in the low double digits for the full year. Last year, adjusted earnings were $2.89.
Time Warner’s shares edged down 2 cents to $39.10 in premarket trading.