Time Warner beats forecasts
February 11, 2015
Time Warner has reported a better-than-expected quarterly profit, helped by higher subscription fees for channels from Turner Broadcasting and HBO.
Revenue from Turner Broadcasting rose 2.3 per cent to $2.6 billion in the fourth quarter ended December 31st. The business accounts for 34.6 per cent of total revenue and was boosted by higher domestic rates and growth in international markets.
Revenue from HBO, which contributes about 18 per cent to total revenue, rose 6.2 percent to $1.3 billion. The channels carries popular shows such as Game of Thrones and True Detective.
However, a 4.5 per cent decline in revenue in its Warner Bros movie studio business pulled Time Warner’s total revenue down 1 per cent to $7.53 billion. That was lower than analysts
Time Warner, which rejected a takeover bid from Rupert Murdoch’s Twenty-First Century Fox in 2014, is in the midst of a plan to boost earnings and growth. The plan includes cutting jobs and reducing costs.