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Tag: Time Warner Inc.

  • Time Warner numbers up on higher subscription, content fees

    Time Warner numbers up on higher subscription, content fees

    BENGALURU: Time Warner Inc (Time Warner) reported increase in revenue and operating income due to growth across these parameters by all its businesses-Turner, Home Box Office (HBO) and Warner Bros-for the year and quarter ended 31 December 2017 (FY 2017, the year under review; Q4 2018, the quarter under review). Time Warner’s total revenue for FY 2017 increased by 6.7 per cent to USD 31,271 million from USD 29,318 million in FY 2016. Total revenue expanded by 9.1 per cent year-over year (y-o-y) for Q4 2017 to USD 8,611 million from USD 7,891 million in Q4 2016. Operating income increased by 4.9 per cent in FY 2017 to USD 7,920 million from USD 7,547 million in FY 2016. Operating income in Q4 2018 increased by 12.8 per cent yoy to USD 1,907 million.

    The company says in its investor release that revenue in FY 2017 benefitted from increases of 13 per cent (USD752 million) in subscription revenue and 11 per cent (USD74 million) in content and other revenue, partially offset by a decrease of 2 per cent (USD109 million) in advertising revenue. The increase in subscription revenue was due to higher domestic rates and growth at Turner’s international networks, partially offset by lower domestic subscribers. Content and other revenue increased due to higher licensing revenue. The decline in advertising revenue was primarily due to lower delivery at Turner’s domestic entertainment networks and the comparison to Turner’s networks airing the NCAA Division I Men’s Basketball National Championship and Final Four games in the prior year, partially offset by increase in Turner’s news businesses and growth in its international networks.

    Operating income in FY 2017 improved due to the increase in revenue, partially offset by higher expenses, including increased programming and marketing costs. Programming costs grew by 12 per cent primarily due to higher costs related to the first year of Turner’s new agreement with the NBA. The increase in marketing costs was mainly to support original series on Turner’s domestic entertainment networks.

    Revenue in Q4 2017 grew due to due to increases of 14 per cent (USD 204 million) in subscription revenue, 32 per cent (USD 55 million) in content and other revenue and 2 per cent (USD 26 million) in advertising revenue. Subscription revenue benefitted from higher domestic rates and growth at Turner’s international networks, partially offset by lower domestic subscribers. Content and other revenue increased primarily due to higher licensing revenue. The increase in advertising revenue was due to higher revenue associated with MLB postseason games and growth at Turner’s international networks, partially offset by a decline at Turner’s news businesses related to the comparison to last year’s US presidential election.

    Increase of operating income in Q4 2017 reflected revenue growth partially offset by higher expenses, including increased programming costs. Programming expenses grew by 10 per cent mainly due to higher costs associated with airing MLB post-season games.

    Time Warner chairman and chief executive officer Jeff Bewkes said: “We had another very successful year in 2017, achieving our financial goals thanks to the great creative and programming excellence across Time Warner. All three of our operating divisions increased revenue and profits while also investing to capitalize on the growing demand for the most creative and compelling content as well as new ways to deliver it to audiences worldwide. Warner Bros. had its best year ever at the global box office with its films grossing over USD5 billion in box office receipts, led by hits like Wonder Woman, It and Dunkirk, which received eight Academy Award nominations, including for Best Picture. Warner Bros. also remains the number 1 supplier of television shows for the broadcast networks, and saw continued growth in games with franchise releases Middle-earth: Shadow of War and Injustice 2.”

  • FY-2015: Time Warner revenue up 2.8%

    FY-2015: Time Warner revenue up 2.8%

    BENGALURU: Time Warner Inc reported 2.8 per cent growth in revenue for the year ended 31 December, 2015 (current year, FY-2015) at $28,118 million as compared to the $27,349 million in FY-2014. Adjusted Operating Income increased 18.7 per cent in the current year to $6,923 million as compared to $5,833 million while Operating Income increased 14.9 per cent to $6,865 million in the current year as compared to $5,975 million in the previous year.

    Time Warner attributes overall revenue growth to growth across all operating divisions. It says that the growth in Adjusted Operating Income benefited from lower programming charges at Turner and restructuring and severance charges across the company, partially offset by a swing in inter-segment eliminations. It says further that Revenues and Adjusted Operating Income included the unfavourable impact of foreign exchange rate.

    Time Warner chairman and chief executive officer Jeff Bewkes said, “We had another very successful year in 2015, demonstrating once again Time Warner’s ability to deliver strong financial performance as well as creative and programming excellence. Revenues grew three per cent and Adjusted Operating Income was up 19 per cent. All three of our operating divisions increased revenue and profits while also investing to capitalize on the shift to on-demand viewing and growing worldwide demand for the very best video content. Warner Bros. had its best year ever in videogames, led by Mortal Kombat X and Batman: Arkham Knight, and remained the number one supplier of broadcast television programming, including the biggest new hit of the TV season in Blindspot. As we embark on what promises to be a very strong year for Warner Bros. theatrically, Mad Max: Fury Road and Creed received a combined 11 nominations for the 88th Academy Awards.”

    Bewkes continued, “Home Box Office grew subscribers both on its linear networks and through HBO Now, our new stand-alone streaming service. Once again, HBO distinguished itself with the combination of the biggest Hollywood hits and best original programming. In 2015, HBO received 43 Primetime Emmys, the most in a single year by any network in at least 25 years — led by a record 12 Emmys for Game of Thrones. Turner continued to prove its tremendous value to its audiences, distributors, and advertisers with TBS, TNT and Adult Swim all ranking among ad-supported cable’s top 10 networks in primetime among adults 18-49 for the year. CNN was the fastest-growing top 40 cable network in its key demographic in the U.S. for the year, and Cartoon Network was the only top 3 kids network to grow ratings. Further demonstrating our commitment to shareholder returns, during 2015 we returned $4.8 billion to our shareholders through share repurchases and dividends, and this morning announced a 15 per cent increase to our dividend and a new $5 billion share repurchase program.”

    Turner

    Revenues increased 1.9 per cent ($200 million) to $10,596 million in FY-2015 as compared to $10,396 million, benefiting from increases of 16 per cent ($88 million) in Content and other revenues, two per cent ($69 million) in Advertising revenues and one per cent ($43 million) in Subscription revenues. Time Warner says that the increase in Content and other revenues was due to higher subscription video-on-demand revenues, primarily from licensing select Turner original programming to Hulu.

    Advertising revenues benefited from domestic growth, primarily due to Turner’s news business, and local currency growth at Turner’s international networks, partially offset by the impact of foreign exchange rates. The increase in Subscription revenues was due to higher domestic rates and local currency growth at Turner’s international networks, partially offset by the impact of foreign exchange rates and lower domestic subscribers.

    Adjusted Operating Income increased 32.3 per cent ($1 billion) to $4,110 million in the current year as compared to $3,106 million primarily due to lower programming and restructuring and severance expenses. Programming costs declined 11 per cent due to a decrease in programming charges ($395 million). Excluding the charges from both years, programming costs declined in the low single digits primarily due to lower syndicated programming expenses as a result of the abandonment of certain programming in 2014 and the absence of NASCAR programming, partially offset by higher costs associated with airing the MLB playoffs.

    Operating Income increased 38.4 per cent ($1,133 million) to $4,087 million. The current and prior years included $17 million and $137 million, respectively, of foreign currency says Time Warner.

    Home Box Office

    Revenues increased four per cent ($217 million) to $5,615 million, due to increases of four per cent ($170 million) in Subscription revenues and six per cent ($47 million) in Content and other revenues. Subscription revenues grew primarily due to higher domestic rates, partially offset by lower international revenues, which included the impact of the transfer to Turner of the operation of HBO’s basic cable network in India. The increase in Content and other revenues primarily reflects higher licensing revenues, partially offset by lower home entertainment revenues.

    Adjusted Operating Income rose 5.2 per cent ($88 million) to $1,878 million in FY-2015 as compared to $1,790 million in FY-2014, reflecting the higher revenues partially offset by increased expenses. The growth in expenses was mainly due to higher marketing and technology costs related to HBO Now, HBO’s stand-alone streaming service, as well as higher programming costs, partially offset by lower restructuring and severance costs. Programming costs grew 3 per cent reflecting higher original programming expenses, including programming charges.
    Operating Income increased 5.2 per cent ($92 million) to $1,878 million in the current year as compared to Rs 1,786 million in the previous year.

    Warner Bros.

    Revenues increased 3.7 per cent ($466 million) to $12,992 million in FY-2015 as compared to $12,576 million, reflecting higher videogames and television revenues, partially offset by lower theatrical and home entertainment revenues as well as the impact of foreign exchange rates.

    The increase in videogames revenues was mainly due to the releases of Mortal Kombat X, LEGO Dimensions and Batman: Arkham Knight. Television revenues increased primarily due to higher licensing revenues, including from the domestic availabilities of 2 Broke Girls, The Big Bang Theory, Person of Interest, Friends and Seinfeld. Theatrical revenues declined as the prior year included revenues from the final two instalments of The Hobbit trilogy as well as The LEGO Movie and Godzilla.

    Adjusted Operating Income increased 15 per cent ($187 million) to $1.4 billion, reflecting higher revenues as well as lower restructuring and severance charges and related cost-savings.

    Operating Income increased 22.2 per cent ($257 million) to $1,416 million. The prior year included a $36 million foreign currency charge related to the re-measurement of Warner says Time Warner.

  • FY-2015: Time Warner revenue up 2.8%

    FY-2015: Time Warner revenue up 2.8%

    BENGALURU: Time Warner Inc reported 2.8 per cent growth in revenue for the year ended 31 December, 2015 (current year, FY-2015) at $28,118 million as compared to the $27,349 million in FY-2014. Adjusted Operating Income increased 18.7 per cent in the current year to $6,923 million as compared to $5,833 million while Operating Income increased 14.9 per cent to $6,865 million in the current year as compared to $5,975 million in the previous year.

    Time Warner attributes overall revenue growth to growth across all operating divisions. It says that the growth in Adjusted Operating Income benefited from lower programming charges at Turner and restructuring and severance charges across the company, partially offset by a swing in inter-segment eliminations. It says further that Revenues and Adjusted Operating Income included the unfavourable impact of foreign exchange rate.

    Time Warner chairman and chief executive officer Jeff Bewkes said, “We had another very successful year in 2015, demonstrating once again Time Warner’s ability to deliver strong financial performance as well as creative and programming excellence. Revenues grew three per cent and Adjusted Operating Income was up 19 per cent. All three of our operating divisions increased revenue and profits while also investing to capitalize on the shift to on-demand viewing and growing worldwide demand for the very best video content. Warner Bros. had its best year ever in videogames, led by Mortal Kombat X and Batman: Arkham Knight, and remained the number one supplier of broadcast television programming, including the biggest new hit of the TV season in Blindspot. As we embark on what promises to be a very strong year for Warner Bros. theatrically, Mad Max: Fury Road and Creed received a combined 11 nominations for the 88th Academy Awards.”

    Bewkes continued, “Home Box Office grew subscribers both on its linear networks and through HBO Now, our new stand-alone streaming service. Once again, HBO distinguished itself with the combination of the biggest Hollywood hits and best original programming. In 2015, HBO received 43 Primetime Emmys, the most in a single year by any network in at least 25 years — led by a record 12 Emmys for Game of Thrones. Turner continued to prove its tremendous value to its audiences, distributors, and advertisers with TBS, TNT and Adult Swim all ranking among ad-supported cable’s top 10 networks in primetime among adults 18-49 for the year. CNN was the fastest-growing top 40 cable network in its key demographic in the U.S. for the year, and Cartoon Network was the only top 3 kids network to grow ratings. Further demonstrating our commitment to shareholder returns, during 2015 we returned $4.8 billion to our shareholders through share repurchases and dividends, and this morning announced a 15 per cent increase to our dividend and a new $5 billion share repurchase program.”

    Turner

    Revenues increased 1.9 per cent ($200 million) to $10,596 million in FY-2015 as compared to $10,396 million, benefiting from increases of 16 per cent ($88 million) in Content and other revenues, two per cent ($69 million) in Advertising revenues and one per cent ($43 million) in Subscription revenues. Time Warner says that the increase in Content and other revenues was due to higher subscription video-on-demand revenues, primarily from licensing select Turner original programming to Hulu.

    Advertising revenues benefited from domestic growth, primarily due to Turner’s news business, and local currency growth at Turner’s international networks, partially offset by the impact of foreign exchange rates. The increase in Subscription revenues was due to higher domestic rates and local currency growth at Turner’s international networks, partially offset by the impact of foreign exchange rates and lower domestic subscribers.

    Adjusted Operating Income increased 32.3 per cent ($1 billion) to $4,110 million in the current year as compared to $3,106 million primarily due to lower programming and restructuring and severance expenses. Programming costs declined 11 per cent due to a decrease in programming charges ($395 million). Excluding the charges from both years, programming costs declined in the low single digits primarily due to lower syndicated programming expenses as a result of the abandonment of certain programming in 2014 and the absence of NASCAR programming, partially offset by higher costs associated with airing the MLB playoffs.

    Operating Income increased 38.4 per cent ($1,133 million) to $4,087 million. The current and prior years included $17 million and $137 million, respectively, of foreign currency says Time Warner.

    Home Box Office

    Revenues increased four per cent ($217 million) to $5,615 million, due to increases of four per cent ($170 million) in Subscription revenues and six per cent ($47 million) in Content and other revenues. Subscription revenues grew primarily due to higher domestic rates, partially offset by lower international revenues, which included the impact of the transfer to Turner of the operation of HBO’s basic cable network in India. The increase in Content and other revenues primarily reflects higher licensing revenues, partially offset by lower home entertainment revenues.

    Adjusted Operating Income rose 5.2 per cent ($88 million) to $1,878 million in FY-2015 as compared to $1,790 million in FY-2014, reflecting the higher revenues partially offset by increased expenses. The growth in expenses was mainly due to higher marketing and technology costs related to HBO Now, HBO’s stand-alone streaming service, as well as higher programming costs, partially offset by lower restructuring and severance costs. Programming costs grew 3 per cent reflecting higher original programming expenses, including programming charges.
    Operating Income increased 5.2 per cent ($92 million) to $1,878 million in the current year as compared to Rs 1,786 million in the previous year.

    Warner Bros.

    Revenues increased 3.7 per cent ($466 million) to $12,992 million in FY-2015 as compared to $12,576 million, reflecting higher videogames and television revenues, partially offset by lower theatrical and home entertainment revenues as well as the impact of foreign exchange rates.

    The increase in videogames revenues was mainly due to the releases of Mortal Kombat X, LEGO Dimensions and Batman: Arkham Knight. Television revenues increased primarily due to higher licensing revenues, including from the domestic availabilities of 2 Broke Girls, The Big Bang Theory, Person of Interest, Friends and Seinfeld. Theatrical revenues declined as the prior year included revenues from the final two instalments of The Hobbit trilogy as well as The LEGO Movie and Godzilla.

    Adjusted Operating Income increased 15 per cent ($187 million) to $1.4 billion, reflecting higher revenues as well as lower restructuring and severance charges and related cost-savings.

    Operating Income increased 22.2 per cent ($257 million) to $1,416 million. The prior year included a $36 million foreign currency charge related to the re-measurement of Warner says Time Warner.

  • 21st Century Fox CEO James Murdoch to speak at Ignition 2015

    21st Century Fox CEO James Murdoch to speak at Ignition 2015

    MUMBAI: Ignition 2015: Future of Digital, which is Business Insider’s flagship annual conference, will see 21st Century Fox CEO James Murdoch as a key speaker.

     

    The conference is scheduled to take place on 8 – 9 December, 2015 in New York City.

     

    Ignition has brought together the best minds in media and technology to share what they see on the horizon. Through unscripted interviews, cutting-edge demos, and insights from industry pioneers, they will highlight key trends to be aware of and what one needs to do to stay ahead.

     

    In his nearly two-decade career with 21st Century Fox, Murdoch has held an impressive succession of leadership roles. He has had direct responsibility for the company’s expansion, strategic transactions, and transformative growth. Under his leadership, the company’s cable and broadcasting networks reach more than 1.8 billion subscribers everyday. Murdoch previously served as co-COO, chairman and CEO for Europe and Asia, and chairman of BSkyB, Sky Deutschland, and Sky Italia.

     

    Apart from Murdoch, the other key speakers at Ignition 2015 are as follows: Sony Pictures Entertainment chairman & CEO Michael Lynton, Time Warner Inc. chairman & CEO Jeff Bewkes, CBS Corporation president & CEO Leslie Moonves, Comcast chairman & CEO Brian Roberts, BuzzFeed founder & CEO Jonah Peretti, TheStreet.com chairman Jim Cramer, Facebook VP of Global Marketing Solutions Carolyn Everson, Rent the Runway co-founder & CEO Jennifer Hyman, GE chairman & CEO Jeff Immelt, Verizon chairman & CEO Lowell McAdam, DraftKings CEO Jason Robins, Vimeo CEO Kerry Trainor, Sourcepoint Technologies, Inc. founder & CEO Ben Barokas, Interlude founder & CEO Yoni Bloch, GE executive director, global brand marketing Linda Boff, Breyer Capital founder & CEO Jim Breyer, Hulu CEO Mike Hopkins, Sharethrough president Patrick Keane, Getty Images co-founder & chairman Jonathan Klein, Blendle co-founder Alexander Klöpping, CBS Interactive president & CEO Jim Lanzone, RBC Capital Markets Managing director, Internet Mark Mahaney, Piper Jaffray Managing director & Senior Research Analyst Gene Munster, Smarty Pants Chief Brainiac Stephanie Retblatt, Gilt Groupe chairman & founder Kevin Ryan, Blue Apron co-founder & CEO Matthew Salzberg, Taboola founder & CEO Adam Singolda, The New York Times Company president & CEO Mark Thompson, Refinery29 co-founder & co-CEO Philippe von Borries and Roku founder & CEO Anthony Wood.

     

    Additionally, speakers from Business Insider will be editor-in-chief & CEO Henry Blodget, chief correspondent Nicholas Carlson, deputy editor, tech insider Steve Kovach, deputy editor, tech, science, and entertainment Alyson Shontell and executive editor Jay Yarow.

     

    In its sixth year now, Ignition 2015 aims to give a new understanding of the transformations taking place in the digital world. Close to 700 senior executives in technology, media, entertainment, investment, and finance will be discussing innovative ideas.

  • Q2-2015: Warner Bros revenue growth boosts Time Warner revenues by 8.2%

    Q2-2015: Warner Bros revenue growth boosts Time Warner revenues by 8.2%

    BENGALURU: A 14.9 per cent revenue growth in its Warner Bros segment at $3298 million in the quarter ended 30 June, 2015 (Q2-2015) as compared to the $2870 million in Q2-2014 helped boost Time Warner Inc by 8.2 per cent. 

     

    The other two segments – Turner and Home Box Office (HBO) also reported revenue growth to the extent of 2.8 per cent and 1.5 per cent respectively. Time Warner’s revenue in Q2-2015 was $7348 million as compared to the $6788 million in the corresponding year ago quarter. Adjusted Operating Income grew 15 per cent to $1862 million due to increases at Turner and Warner Bros., partially offset by a decline at HBO. Operating Income increased 19 per cent to $1859 million.

     

    Company speak

     

    Time Warner chairman and CEO Jeff Bewkes said, “We had a very strong second quarter, with revenues up 8 per cent and Adjusted Operating Income growing 15 per cent to a quarterly record of $1.9 billion. Our results were led by Turner and Warner Bros and were achieved at a time when we’re investing aggressively to position the company for continued growth, including the successful launch of HBO NOW, our standalone domestic streaming service. HBO and its sister service Cinemax recently received a combined 131 Primetime Emmy nominations, with a record 126 for HBO – the 15th year in a row that HBO has led in nominations. In addition to being nominated for Outstanding Drama Series, Game of Thrones‘ fifth season set a new record for viewers of an HBO series.”

     

    Bewkes continued, “At Turner, TNT and TBS ranked as the #1 and #2 ad-supported cable networks, respectively, in primetime among adults 18-49, and together with Adult Swim claimed the top 3 spots in primetime among adults 18-34. Cartoon Network was again the only top 3 kids network to grow its 6-11 audience during the quarter and claimed the #2 spot for the first time. And CNN grew primetime viewership in its key 25-54 demo 25 per cent with the help of its award-winning original programming. Warner Bros concluded a very successful upfront, with 62 programs slated for the upcoming television season, including 29 on broadcast networks. That includes a record 20 returning shows and makes Warner Bros. the top supplier of broadcast series again this year. In the quarter, Warner Bros games business also shined with releases of Batman: Arkham Knight and Mortal Kombat X helping make it the top videogame publisher for the first half of the year. Reflecting our commitment to provide direct returns to shareholders, we have returned more than $2.6 billion in dividends and share repurchases year-to-date.”

     

    Segment performance

     

    Turner

     

    Revenues increased 2.8 per cent ($77 million) to $2827 million, benefiting from growth of 48 per cent ($69 million) in Content and other revenues and two per cent ($20 million) in Subscription revenues, partially offset by a decline of one per cent ($12 million) in Advertising revenues. The increase in Content and other revenues was due to the licensing of select Turner original programming to Hulu. Subscription revenues grew due to higher domestic rates and local currency growth at Turner’s international networks, partially offset by the impact of foreign exchange rates. Advertising revenues declined due to the impact of foreign exchange rates, partially offset by growth at Turner’s domestic businesses and local currency growth at Turner’s international networks. The increase in domestic advertising was due to growth at Turner’s domestic news businesses and the 2015 NCAA Division I Men’s Basketball Championship tournament, partially offset by lower delivery at certain domestic networks and the absence of NASCAR programming. Advertising revenue growth was also adversely impacted by fewer NBA playoff games in the quarter.

     

    Adjusted Operating Income increased 20 per cent ($190 million) to $1130 million, due to the increase in revenues and lower expenses, including lower programming costs. Programming costs decreased nine per cent primarily due to the absence of NASCAR programming as well as lower syndicated programming expenses as a result of the abandonment of certain programming in 2014. Operating Income increased 22 per cent ($201 million) to $1130 million.

     

    Home Box Office

     

    HBO revenue increased one per cent ($21 million) to $1438 million, due to an increase of four per cent ($40 million) in subscription revenues, partially offset by a decline of seven per cent ($19 million) in Content and other revenues. Subscription revenues grew due to higher domestic rates, partially offset by lower international revenue, which included the impact of the transfer to Turner of the operation of HBO’s basic cable network in India. The decrease in Content and other revenues reflected lower home entertainment revenues.

     

    Adjusted Operating Income decreased eight per cent ($44 million) to $508 million, as the increase in revenues was more than offset by higher marketing and technology costs, primarily related to the launch of HBO NOW, HBO’s stand-alone streaming service. Operating Income decreased seven per cent ($40 million) to $508 million.

     

    Warner Bros

     

    The revenue increase mentioned above reflects higher videogames and television licensing revenues, partially offset by lower theatrical revenues and the impact of foreign exchange rates. The increase in videogames revenues was primarily due to the releases of Batman: Arkham Knight and Mortal Kombat X. Television licensing revenues benefited from the second-cycle syndication of The Big Bang Theory and the subscription video-on-demand licensing ofSeinfeld. Theatrical revenues decreased primarily due to lower worldwide television licensing revenues of theatrical product and a decline in home entertainment revenues due to the comparison against the release of The Hobbit: The Desolation of Smaug in the prior year quarter.

     

    Adjusted Operating Income increased 46 per cent ($108 million) to $344 million, due to the increase in revenues, partially offset by associated film and print and advertising costs, as well as higher theatrical valuation adjustments. Operating Income increased 46 per cent ($107 million) to $341 million.

  • HBO to offer stand-alone HBO streaming service in 2015

    HBO to offer stand-alone HBO streaming service in 2015

    Mumbai: The CEO and chairman of HBO, Richard Plepler, announced that the company will offer a stand-alone HBO streaming service in 2015.  Speaking at the Time Warner Inc. Investor meeting, he cited significant growth opportunities inside the pay-TV universe and then turned to the current ten million broadband-only homes, which is projected to grow.

     

    “That is a large and growing opportunity that should no longer be left untapped.  It is time to remove all barriers to those who want HBO”, Plepler said.

     

    He went on to add, “So, in 2015, we will launch a stand-alone, over-the-top, HBO service in the United States. We will work with our current partners.  And, we will explore models with new partners.  All in, there are 80 million homes that do not have HBO and we will use all means at our disposal to go after them.”