Revenue in film and TV entertainment unit falls 8 percent
Time Warner Inc on Wednesday posted lower quarterly net income as the media company saw declines in its film and TV entertainment and publishing units.
Revenue in its film and TV entertainment unit fell 8 percent compared with a year ago, when it released the movies "Harry Potter and the Deathly Hallows: Part 1" and the sequel to "The Hangover."
Revenue in its publishing unit, whose titles includes Time and Sports Illustrated, declined 9 percent as advertising sales and subscription revenue fell.
Revenue in its networks division, which includes cable networks under Turner Entertainment and premium cable service HBO, increased 4 percent to $3.6 billion. The unit saw a boost from an uptick in subscriptions to HBO as well as higher advertising revenues helped by National Basketball Association games.
Time Warner saw declines in its domestic news networks, which include CNN. Last week CNN chief Jim Walton announced plans to leave the company, which has been plagued by low ratings in recent years.
Time Warner maintained its full-year forecast for net income to grow in the low double digits. Wall Street analysts are expecting $3.20 per share.
Second-quarter net income was $429 million, or 44 cents a share, compared with $637 million, or 59 cents a share, a year earlier.
Adjusted for charges related to the shutdown of a network in India and some TV operations in Turkey, earnings were 59 cents per share, which beat analysts' estimates by a penny, according to Thomson Reuters I/B/E/S.
Overall revenue fell 4 percent to $6.7 billion. Analysts were expecting $6.94 billion, according to Thomson Reuters I/B/E/S.
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