Time Warner Boosts Full Year Outlook After Q2 Profit Surges 87%

(RTTNews) - Media and entertainment giant Time Warner Inc. (TWX) Wednesday reported a significant increase in profit for the second quarter, as revenues climbed 10 percent with strong growth in the Film and TV Entertainment as well as Networks segments. The owner of CNN and HBO channel and Time magazine boosted its full year earnings forecast. The stock is gaining more than 3 percent in pre-market activity.

CEO Jeff Bewkes said, "We had a very strong quarter and first half financially and operationally, putting us on track for another great year.''

Net income attributable to shareholders surged to $771 million or $0.81 per share from $413 million or $0.42 per share in the year-ago quarter.

Adjusted net income per share was $0.83, while it totaled $0.57 last year. On average, 29 analysts polled by Thomson Reuters expected the company to report earnings of $0.76 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter rose 10 percent to $7.43 billion from $6.74 billion, as growth at the Film and TV Entertainment and Networks segments more than offset a modest decline at the Publishing segment. Analysts had a consensus revenue estimate of $7.11 billion for the quarter.

In the Networks segment, which includes Turner Broadcasting and HBO, revenues increased 7 percent to $3.8 billion. Within the segment, Subscription revenues advanced 4 percent, Advertising revenues increased 11 percent and Content revenues rose 5 percent.

In the Film & Entertainment division, revenues climbed 13 percent to $2.9 billion, mainly due to a stronger theatrical release slate that included Man of Steel, The Hangover Part III and The Great Gatsby, as well as an increase in international television syndication and subscription video-on-demand revenues.

The publishing business Time Inc., which Time Warner plans to spin off into an independent public company, generated $833 million, down 3 percent from last year, reflecting a 5 percent drop in Advertising revenues and a 7 percent decline in Subscription revenues.

Further, Time Warner increased its 2013 full-year business outlook. The company now expects adjusted net income per common share growth to be in the mid-teens off a 2012 base of $3.24. Analysts expect the company to report earnings of $3.68 per share for fiscal 2013.

While announcing the first-quarter results, the company expected percentage growth in adjusted full year net income in the low double digits, compared with $3.28 per share in 2012.

TWX closed at $64.08 on Tuesday. The stock is up 3.3 percent in pre-market activity.