Time Warner announced lower first quarter profits despite higher revenues from its TV business because of lower earnings at is movie unit. Net income was $653 million down 10 per cent from $725 million a year ago.
Revenues rose 6 per cent to $6.7 billion. Advertising revenues were up 20 per cent, driven by a 31 per cent increase at Turner Broadcasting.
“We’re on track to meet our financial goals for 2011 and making a lot of progress toward our longer-term objectives,” Jeff Bewkes, CEO, said. “”We are also very excited about the progress we are making across the company in introducing and expanding our digital offerings to allow consumers to enjoy our content sooner and on more platforms and devices than ever before.”
Adjusted operating income at Time Warner’s networks unit, which includes Turner and HBO, rose 2 per cent to $1.168 billion from $1.142 billion as programming costs rose 37 per cent due to the NCAA basketball tournament, as well as higher increase costs for original and licensed programming. Revenues rose 18 per cent to $3.496 billion from $2.958 billion. Advertising revenue rose 31 per cent, thanks to March Madness and higher sales of HBO programming.