Time Warner Revenues Up on Subs Boost, Box-Office Intake

Time Warner recorded a 6-percent increase in third-quarter revenues to $7.6 billion—reporting gains at Turner, HBO and Warner Bros.—delivering a net profit of $1.4 billion.

Turner’s revenues rose by 6 percent to $2.8 billion, with subscription revenues up 13 percent and content and other revenues up 4 percent thanks to improved licensing fees. Ad revenues, however, dipped by 3 percent, largely at some of its domestic networks, but there were increases at Turner’s news businesses. The subscription revenues benefited from higher domestic rates and growth at Turner’s international networks, despite a lower number of domestic subscribers.

HBO’s revenues were up 13 percent to $1.6 billion, with double-digit increases in both subscription (12 percent) and content (14 percent) revenues. Subscription revenues increased due to a gain in U.S. subscribers and rates and international growth. The increase in content and other revenues was primarily due to higher international licensing and home-entertainment revenues.

Warner Bros. had more modest growth, with revenues increasing by 2 percent to $3.5 billion, reflecting higher theatrical and video games revenues, partially offset by lower television revenues.

“We delivered very strong third-quarter results, keeping us on track to achieve our objectives for 2017,” said Jeffrey Bewkes, chairman and CEO. “Both Turner and Home Box Office achieved double-digit gains in subscription revenues, including HBO’s highest quarterly growth in 13 years, while Warner Bros. had a terrific quarter in theatrical, which all contributed to us increasing operating income by 11 percent and adjusted operating income by 13 percent.”

The results and achievements in the quarter “reflect our continued focus on executing our strategy, which includes both creating the most engaging content and advancing the ways that consumers can enjoy and experience our content and brands across platforms,” Bewkes continued. “The ability to accelerate our pace of innovation and connect more directly with consumers are among the reasons we are excited about our proposed merger with AT&T, which remains on track to close before year-end, pending regulatory review and consents.”