Time Warner reported third quarter earnings on Wednesday, beating Wall Street expectations thanks to growth from HBO and Warner Bros.
The company delivered $1.25 per share on revenue of $6.56 billion; Wall Street analysts expected $1.09 per share on revenue of $6.51 billion.
Warner Bros. showed significant growth, up 15 percent at $3.2 billion in revenue. Video games helped boost WB, as the release of “Lego Dimensions”and “Mad Max” delivered gains. “Mortal Kombat X” and “Batman: Arkham Knight” were also revenue drivers.
TV licensing was boosted by the initial cable and off-network availability of “2 Broke Girls“ and sales of “Person Of Interest“ to cable and streaming outlets. CEO Jeff Bewkes also pointed to freshman hits “Blindspot” and “Supergirl,” which were the two most-watched shows in the 18-49 demo on broadcast.
HBO revenue was up 5 percent to $1.4 billion, with operating income up 37% to $519 million. Increases in domestic subscription rates along with higher domestic licensing sales helped boost the premium cable service. The company also cut expenses from layoffs and garnered lower distribution and programming costs.
“Our revenue growth was led by Warner Bros. and Home Box Office, and illustrated how our investments in great content have been paying off in our traditional television businesses, as well as in newer areas such as videogames,” CEO Jeff Bewkes said.
He also pointed to the company’s growth in video games, noting, “how our investments in great content have been paying off in our traditional television businesses, as well as in newer areas such as video games.”
The company kicks off its earnings call at 10:30 a.m. ET.