Time Warner beat earnings and revenue estimates
Media giant Time Warner (TWX) reported its fiscal 4Q17 on Thursday, February 1. The company beat earnings and revenue estimates. Time Warner reported revenue of $8.6 billion versus Wall Street estimates of $8.42 billion. Revenue was up 9.1% in fiscal 4Q17 on a year-over-year (or YoY) basis.
The company posted a net profit of $1.39 billion or $1.75 per share, compared to $293 million or $0.37 per share in the same quarter last year. On an adjusted basis, the company posted earnings of $2.66 per share versus analysts’ projection of $1.43 per share.
All of Time Warner’s units grew last quarter
Revenue from the company’s Turner Network, which includes TNT and CNN, rose 10% YoY to $3.1 billion. The growth was due to higher subscription and ad income. Ad income increased due to interest in MLB (Major League Baseball) post-season games. These games air on TNT.
Meanwhile, revenue generated from HBO reached $1.7 billion, which is a 13% increase from the same quarter last year, on the back of the increasing popularity of Game of Thrones. The Time Warner unit said it had its highest increase in domestic subscribers in 2017.
Meanwhile, Warner Bros had its best-ever box office revenue of over $5 billion, thanks to hits such as It and Dunkirk.
Time Warner’s shares have been flat over the last 12 months. All of the company’s units saw decent growth. However, this growth comes at an uncertain time for the company. AT&T’s (T) takeover of the company could be in jeopardy, as the Justice Department is challenging the deal.