Time Warner reported a 10 percent slide in its quarterly profit on Wednesday. But the results beat Wall Street analysts’ expectations, and the company said it now expects full-year profits to be much higher than previously forecast.
Net income from continuing operations was $522 million, or 46 cents per share, down 10 percent from a year ago.
Adjusted operating income increased 5 percent to $1.4 billion, or 62 cents per share — well above the 53 cents per share analysts were expecting.
The continuing recovery of the advertising market was the main reason for Time Warner’s improved outlook.
Revenue for Time Warner’s networks — including CNN and HBO — jumped 9 percent (to $3 billion), including a 10 percent rise in advertising revenue and 9 percent bump in revenue from subscriptions.
Revenue at Warner Bros. was flat, due to a fill slate that lacked such hits as "Harry Potter and the Half-Blood Prince" and "The Hangover," which boosted 2009’s third quarter earnings. But chief executive Jeff Bewkes said the company is optimistic about a fourth quarter box office slate that includes another “Harry Potter” film, "Harry Potter and the Deathly Hallows: Part 1."
The company’s Time Inc. publishing division — that incudes Time and People magazines — saw an increase in advertising revenue. But that was offset by a dive in subscriptions. Overall revenue at Time Inc. ($901 million) fell 1 percent.
Bewkes said Time Warner now expects full-year earnings to be in the high 20 percent range, above its second quarter forecast of “at least 20 percent.”
