Time Warner’s first quarter earnings showed year-to-year improvements in revenues and profits thanks to strong performances from its TV units Turner Broadcasting and HBO.
Revenues grew by 3% to $7.3 billion, while adjusted operating income was up 11% to $2 billion.
The company said Wednesday that Tuner saw an 11% jump in subscription revenue, as it has seen ratings gains and higher carriage fees from cable and satellite operators. The unit, which includes cable networks TBS, TNT and CNN, is also benefiting from a robust TV advertising market.
Overall, Turner revenues increased 7% to $2.9 billion, with adjusted operating income up 10% to $1.2 billion.
The quarter included Turner's first ever telecast of the final game of the NCAA Men’s Basketball Championship. The tournament brought record revenue to TBS, according to Time Warner chairman Jeff Bewkes. Turner recently extended its deal to carry the tournament in partnership with CBS through 2032.
CNN's financial performance has also been strong as the cable news network more than doubled its prime time audience in the first quarter, thanks to its coverage of the presidential race and its original series such as “Race for the White House.”
Revenues at premium cable network HBO were up 8% to $1.5 billion, thanks to subscription gains, rate increases and the licensing of its shows to international markets.
Warner Bros. revenues decreased 3% to $3.1 billion, due to a smaller take in theatrical box office. Last year, the movie studio had "American Sniper" and "The Hobbit: The Battle of the Five Armies" in theaters. This year's big release from the movie studio, "Batman v. Superman: Dawn of Justice," opened late in the quarter.
Television revenues for Warner Bros. were up thanks to higher growth in fees from domestic and international licensing fees.
Adjusted operating income at Warner Bros. was up 29% to $426 million. The unit saw lower costs due to fewer theatrical releases in the quarter.
By: Stephen Battaglio (LA Times).
Review: Emerging Market Formulations &
Research Unit, Flagship Records.
For The #FacebookTeam