Advanced Television

TW profit flies

May 6, 2010

Time Warner enjoyed the most profitable quarter in its history thanks to an ad recovery and strong movie performance. Net income rose to $725 million, up from $660 million in the prior period. Revenue was up 5 per cent, to $6.3 billion, for the quarter, the company’s biggest gain in almost two years.

Time Warner’s cable TV unit also showed a remarkable rise in ad revenue, up 9 per cent or $67 million on the year ago period thanks to stronger scatter pricing and growth at international operations at international operations. The increase is a major sequential improvement compared to fourth quarter when the unit saw a 4 per cent dip in ad revenue.

Subscription revenue rose 7 per cent, or $131 million, partly due to growth at international channels and favourable foreign exchange rates. Content revenue from programme and product sales grew 22 per cent, or $46 million. Revenue at the networks unit rose 9 per cent, or $252 million, to $3 billion.

Elsewhere, the publishing segment revenue fell 1 per cent, to $799 million, while revenue at the film unit grew 2 per cent, to $2.7 billion.

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