Time Warner Revenues Up 10 Percent

NEW YORK: Revenues at Time Warner for the second quarter reached $7 billion, a 10-percent boost, delivering a net profit that was 13.5 percent higher, at $638 million, with the company "on track to meet our financial goals for the year," said chairman and CEO Jeff Bewkes.

"Our continued investment in our content and brands is paying off," Bewkes added, citing such hits as TNT’s Falling Skies, HBO’s Game of Thrones and Warner Bros.’ The Hangover Part II and Harry Potter and the Deathly Hallows-Part 2.

He continued, “We’re also making progress shaping the business models that will benefit us as the digital transition continues. HBO GO debuted on mobile devices in May to a great response. Last month,CNN and HLN added live streaming functionality to their mobile apps, which have now been downloaded more than 10 million times. And the acquisition in May of Flixster, Inc. underscores our commitment to accelerate the digital transition of home entertainment and make it much more compelling for consumers to own digital movies. We also have bought back $2.3 billion of our shares so far this year, reflecting our confidence in our competitive position and growth prospects and our dedication to providing attractive shareholder returns.”

Turner Broadcasting and HBO, under Time Warner’s Networks segment, reported a 9-percent boost in revenues to $3.5 billion, with sub revenues up by 7 percent, ad revenues up by 11 percent and content revenues up by 18 percent. Networks’ operating income rose by 4 percent to reach $1 billion. Filmed entertainment, meanwhile, saw revenues increase by 13 percent to $2.8 billion. Nonetheless, increased advertising expenses, higher theatrical film valuation adjustments increased overhead costs and higher restructuring and severance costs resulted in an 11-percent decline in operating income to $154 million.