Cable Helps Lift Time Warner Profits

NEW YORK: Net income rose 44 percent at Time Warner to $1.19 billion, with the strong performance from the cable networks helping to offset sluggishness in the film and magazine units.

Revenue at the cable unit, which includes Turner Broadcasting channels such as CNN and premium movie service HBO, was up 5 percent to $3.5 billion. Advertising was up 11 percent to $96 million.

In the film and TV entertainment unit, revenues were down 7 percent to $2.7 billion. There was, however, a tough comparison, since the year ago period included The Dark Knight Rises. The Time Inc. publishing unit, which it plans to spin-off next year, saw a 2-percent decline in revenue.

Overall, Time Warner saw revenue rise 0.2 percent to $6.86 billion.

Jeff Bewkes, the chairman and CEO, said: “We had another strong quarter and remain on track for another very successful year, thanks to our commitment to great storytelling across the company. Adjusted operating income for the third quarter increased by 8 percent, while Adjusted EPS rose by 20 percent. The biggest driver was again our networks segment, which grew adjusted operating income by double digits and posted its highest quarterly profits ever. At Turner, TBS was the number two ad-supported cable network in primetime across adults 18-34 and 18-49. And TNT finished the quarter as the number two network among adults 25-54 in total day, thanks to a lineup of originals that included four of the top ten scripted shows on ad-supported cable. CNN also increased total day ratings in its key demo by 15 percent during the quarter, once again taking share from the competition. HBO continued to distinguish itself by receiving 27 Primetime Emmy Awards this year, including 11 for Behind the Candelabra and five for Boardwalk Empire. That was the most of any network for the twelfth consecutive year. And Warner Bros. is once again supplying more shows this season to the broadcast networks than any other studio—including the top two shows on television, The Big Bang Theory and The Voice.”

Bewkes continued: “Warner Bros. is also the leading film studio by domestic box office share this year, helped by the third quarter release of two sleeper hits, The Conjuring and We’re the Millers, as well as the critical and commercial success of our newest release, Gravity. And we’re looking forward to the second release in The Hobbit franchise next month. Finally, reflecting our commitment to stockholder returns, so far this year we’ve repurchased $3.0 billion of our stock and paid out over $800 million in dividends.”