Time Warner Profit Rises; Affirms Full-year Outlook

(RTTNews) - Media and entertainment giant Time Warner Inc. (TWX) Wednesday said third-quarter profit increased from last year, driven by the Networks segment, even as revenues were nearly unchanged. Further, the company backed its full-year earnings outlook.

CEO Jeff Bewkes 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.''

Net income attributable to Time Warner shareholders increased to $1.183 billion from $822 million in the previous year. Earnings per share advanced to $1.26 from $0.84.

The prior-year results have been recast to reflect the presentation of Time Warner's investment in Central European Media Enterprises Ltd.

Income from continuing operations attributable to shareholders was $1.0 billion or $1.11 per share.

Adjusted income per common share from continuing operations was $1.01 while it totaled $0.84 for the year-ago quarter.

On average, 29 analysts polled by Thomson Reuters expected the company to report earnings of $0.89 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew to $6.856 billion from $6.842 billion in the prior year, particularly helped by growth at the Networks segment and lower intersegment eliminations. Analysts estimated revenues of $6.94 billion for the quarter.

In the Networks segment, which include Turner Broadcasting and HBO, revenues grew 5 percent to $3.5 billion, benefiting from a 4 percent growth in Subscription revenues and an 11 percent increase in Advertising revenues. Operating income rose 20 percent from last year.

In the Film & Entertainment division that includes Warner Bros., revenues decreased 7 percent to $2.7 billion, mainly reflecting difficult theatrical comparisons to the year-ago period that included revenues from The Dark Knight Rises, as well as lower television revenue from theatrical product and the timing of subscription video-on-demand availabilities.

The publishing business Time Inc., which Time Warner plans to spin off into an independent public company, posted a 2 percent drop in revenue to $818 million, amid a 4 percent drop in Subscription revenues and a 2 percent slide in in Advertising revenues.

Separately, Time Warner reiterated its full-year business outlook for 2013. The company continues to expect its full-year percentage growth rate in adjusted income per common share from continuing operations to be in the mid-teens off a 2012 adjusted earnings per share base of $3.24. Analysts expect the company to report annual earnings of $3.75 per share.

TWX closed at $68.23 on Tuesday. The stock is up 2.6 percent in pre-market trading.