1Q17 report supports AT&T’s need for Time Warner
AT&T is acquiring Time Warner as part of its revenue diversification efforts. The carrier has been expanding into the media business, and it hopes Time Warner can bolster its media campaigns as it seeks growth opportunities outside the maturing US wireless industry.
Time Warner grows everywhere
Looking at Time Warner’s 1Q17 earnings scorecard, it could be a solid fit for AT&T at this time. Time Warner registered growth across all segments.
The Warner Bros. division, which comprises films, television, and video games, posted 8% revenue growth to $3.4 billion. HBO’s revenues rose 4% to $1.6 billion, and Turner revenues increased 6% to $3.1 billion.
No retreat, no surrender
As a growing business, Time Warner would not only back AT&T’s media efforts by contributing content and customers, but it could also have an immediate positive impact on the company’s top line and bottom line.
AT&T is trying to pull ahead of carrier rivals Verizon (VZ), T-Mobile (TMUS), and Sprint (S) by buying strategic media assets. Time Warner’s glittering 1Q17 results just gave it a reason not to relent in its push to acquire the business.
Time Warner and AT&T have both said they are committed to the merger, but they face the uphill challenge of convincing regulators to approve the deal.