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Time Warner 3Q net income slides, revenue climbs

Time Warner 3Q net income slides, revenue climbs

Time Warner, the media conglomerate behind Warner Bros., HBO, CNN and DC Comics. said Wednesday its third-quarter net income declined, but adjusted earnings surpassed Wall Street's expectations thanks to growing subscription and ad revenue in its networks business.
Providing more evidence that the advertising freeze has begun to thaw, the company again raised its adjusted earnings outlook for 2010, saying it now expects percentage growth in the high 20 percent range. In August Time Warner said it expects growth of "at least" 20 percent, another raise from the prior quarter. Analysts expect earnings of $2.26 per share, an increase of about 24 percent from 2009.
Time Warner said its net income was $522 million, or 46 cents per share for the July-September period. This is down 21 percent from $662 million, or 56 cents per share, a year earlier.
Excluding one-time items, the company earned 62 cents per share, easily surpassing analysts' estimates of 53 cents. Adjusted earnings excluded a charge of $295 million related to debt redemptions.
Total climbed 2 percent to $6.38 billion. Analysts, on average, had expected slightly higher revenue of $6.41 billion, according to a Thomson Reuters poll.
Time Warner's film revenue was flat at $2.8 billion, even with the release of the blockbuster "Inception." But last year had its own big releases, such as "Harry Potter and the Half-Blood Prince" and "The Hangover."
Revenue at Time Warner's networks segment, which includes HBO and Turner Broadcasting, grew 9 percent to $3 billion, boosted by growing ad revenue and higher subscription rates.
Publishing revenue slid 1 percent to $901 million, hurt by lower subscription revenues and the sale of Southern Living At Home magazine. This offset a 5 percent increase in publishing ad revenue, a positive sign for Time Inc.'s magazine empire that includes People, Fortune and Sports Illustrated.
Overall, advertising revenue grew 9 percent, driven by growth at Turner and Time Inc., the company said.
Shares of Time Warner Inc. slid 61 cents to $31.80 in premarket trading.


Updated : 2021-06-23 20:40 GMT+08:00