The Street set a low bar for Time Warner, and the company just barely crossed it. The entertainment giant reported Q2 net income of $429M, -32.7% vs last year, on revenues of $6.7B, -4.1%. Analysts expected revenues to be slightly higher at nearly $7B, but adjusted earnings at 59 cents a share beat forecasts by a penny. Time Warner’s cable networks saw 4% top line growth to $3.6B with pay TV distributor payments +6% — but ad sales only +2%. Some analysts predicted ad growth of at least 4%. The company says that improvements at its domestic entertainment networks, including TNT and TBS, were somewhat offset by weakness at CNN. But operating income was -5% to $974M due in part to the closing of networks in India and Turkey. Over at the Warner Bros studio, revenues were -8% to $2.6B while operating income was -13% to $134M as it struggled against comparisons with last year which included The Hangover Part II and home videos of Harry Potter And The Deathly Hallows: Part 1. Time Warner’s magazine publishing unit revenues were -9% to $858M with operating income plummeting 43% to $72M as ad sales and subscriptions both declined. The company reaffirmed its forecast to end 2012 with a low double digit increase in adjusted earnings per share. “Across Time Warner, we’re continuing to make progress on our long-term goals, and we remain on track to meet our financial objectives for the year,” CEO Jeff Bewkes says.
Time Warner Q2 Earnings Match Expectations But Show Weakness In Ads
What's Hot on Deadline