Time Warner posts rise in 2Q earnings, boosts view
A rebound in advertising markets and strong box office results helped lift Time Warner Inc's second quarter profit 7 per cent, the media conglomerate said today.Updated: Aug 04, 2010, 18:39 IST
A rebound in advertising markets and strong box office results helped lift Time Warner Inc's second quarter profit 7 per cent, the media conglomerate said on Wednesday.
The results topped Wall Street estimates and the company raised its full-year profit forecast.
Time Warner shares rose 74 cents, or 2.3 per cent, to $33.10 ahead of regular trading.
The company's Time Inc magazine unit and cable properties both saw ad revenue improve for the second quarter in a row, a sign that businesses are spending again to get customers' attention.
And a film slate that included Clash of the Titans and Sex and the City 2 helped boost the company's Warner Bros studio. Time Warner reported net income of $562 million, or 49 cents per share, for the three months ended June 30.
That's up from $524 million, or 43 cents, a year ago.
Removing one-time items, earnings came to 50 cents per share, while analysts expected 45 cents, according to Thomson Reuters.
Revenue climbed 8 per cent to $6.38 billion, the biggest increase in two years. Analysts expected revenue of $6.2 billion.
Revenue at Time Warner's cable stations, which include HBO, CNN and others, rose 11 per cent, while the unit's operating profit jumped 14 per cent.
Film entertainment revenue climbed 8 per cent, with a 21 per cent jump in operating profit.
In publishing, which includes Time Inc magazines such as People and Sports Illustrated, revenue was flat and cost cutting helped lift operating profit 50 per cent.
With more than half the year behind it, Time Warner said it expects its earnings per share will end the year up at least 20 per cent from 2009. In May, the company had forecast growth on a per centage basis in the mid-teens.
The new forecast suggests earnings of about $2.20 per share, excluding any one-time charges or gains. That's roughly in line with Wall Street estimates.