Shares are up pre-market as the entertainment giant seemed to fare reasonably well in a quarter that had to compare with last year when it benefited from The Dark Knight Rises. Time Warner says this morning that net income in Q3 came in at $1.18B, +43.9%, on revenues of $6.86B, +0.2%. Analysts thought the top line would be a little higher at $6.94B. But adjusted earnings at $1.01 a share were well ahead of the 89 cents that the Street anticipated. That was partly due to a 4.8% drop in the cost of revenues as well as a $105M gain from the acquisition of a controlling interest in HBO Asia. The Warner Bros-based Film and TV Entertainment unit struggled without Batman, and with a drop in TV revenues. Sales fell 7% to $2.7B while operating income dropped 6% to $307M. The cable networks — Turner Broadcasting and HBO — fared better with ratings improvements at TBS and Adult Swim, as well as CNN. The unit’s revenues were +5% to $3.5B while operating income was +20% to $1.5B. The numbers were helped by a 4% increase in subscription revenues, and an 1% improvement in ad sales. Meanwhile the Time Inc Publishing operation — which Time Warner plans to spin off — continued to slide with revenues 2% to $1M and operating income -9% to $115M. CEO Jeff Bewkes says the company is “on track for another very successful year, thanks to our commitment to great storytelling across the Company.” He also patted Warner Bros on the back for its “two sleeper hits The Conjuring and We’re The Millers, as well as the critical and commercial success of our newest release, Gravity.” Along with the earnings report, Time Warner reaffirmed its forecast to end 2013 with mid-teens growth rate in its adjusted earnings per share,
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