Strong Q2 for Time Warner

NEW YORK: Time Warner's net profit hit $971 million in the second quarter, rising 14 percent on the same period last year, with revenues increasing by 8 percent to $7.3 billion thanks to gains at Turner Broadcasting and Warner Bros.

Turner's revenues in the period were $2.8 billion, a 3-percent increase, with gains in content and subscription revenues and a small drop in ad revenues. The segment's operating income increased by 22 percent to $1.1 billion.

HBO's revenues were up slightly at $1.4 billion, with gains in subs revenues partially offsetting a decline in content and other revenues. Operating profit dropped 8 percent to $508 million.

Revenues at Warner Bros. rose to $3.3 billion, driven by increased video games and TV licensing revenues. The studio's operating income for the period was $344 million, a 46-percent gain.

“Our results were led by Turner and Warner Bros., and were achieved at a time when we’re investing aggressively to position the company for continued growth, including the successful launch of HBO NOW, our standalone domestic streaming service," said Jeffrey Bewkes, chairman and CEO. "HBO and its sister service Cinemax recently received a combined 131 Primetime Emmy nominations, with a record 126 for HBO—the 15th year in a row that HBO has led in nominations. In addition to being nominated for Outstanding Drama Series, Game of Thrones' fifth season set a new record for viewers of an HBO series.”

He continued, “At Turner, TNT and TBS ranked as the number one and number two ad-supported cable networks, respectively, in prime time among adults 18 to 49, and together with Adult Swim claimed the top three spots in prime time among adults 18 to 34. Cartoon Network was again the only top three kids network to grow its 6-to-11 audience during the quarter and claimed the number two spot for the first time. And CNN grew prime-time viewership in its key 25-to-54 demo 25 percent with the help of its award-winning original programming. Warner Bros. concluded a very successful Upfront, with 62 programs slated for the upcoming television season, including 29 on broadcast networks. That includes a record 20 returning shows and makes Warner Bros. the top supplier of broadcast series again this year. In the quarter, Warner Bros.’ games business also shined with releases of Batman: Arkham Knight and Mortal Kombat X helping make it the top video game publisher for the first half of the year. Reflecting our commitment to provide direct returns to shareholders, we have returned more than $2.6 billion in dividends and share repurchases year-to-date.”