HBO, TBS and hit shows like “The Big Bang Theory” helped Time Warner’s profits soundly beat Wall Street’s expectations during the media conglomerate’s third fiscal quarter.
The company reported earnings of $1.18 billion, up 44 percent from the $838 million the company reported in the year ago period and substantially higher than the $835 million analysts had expected. Adjusted earnings per share of $1.01 were up 20 percent from the year-ago period and also bested the 89 cents experts had predicted the company would post.
Revenues were essentially flat at $6.86 billion, due to downturns in the film and publishing businesses. That was slightly below the $6.94 billion that analysts had projected the company would report in revenue.
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Once again the small screen was the engine that drove Time Warner. The company’s television unit saw revenues rise 5 percent to $3.5 billion and operating income jump 20 percent to $1.5 billion on advertising growth and lower programming costs. Through its Warner Bros. studio, the company said it will be the biggest supplier of new broadcast shows this season.
On the film front, the company had hits in the raunchy comedy “We’re the Millers” and the horror film “The Conjuring,” but neither film could match the worldwide juggernaut that was “The Dark Knight Rises,” resulting in a difficult comparison between the company’s most recent summer slate and that of the previous year. Revenues fell 7 percent to $2.7 billion and operating income dipped 6 percent to $307 million.
The magazine business, which Time Warner plans to spin off in the first quarter of 2014, continued to be a tender spot on the balance sheet. Revenues at its publishing division dropped 2 percent to $818 million on lower subscription and advertising sales, while operating income fell 9 percent to $115 million.