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Tag: Time Warner Incorporated

  • Q3-16: Time Warner revenue up 9.2 percent

    Q3-16: Time Warner revenue up 9.2 percent

    BENGALURU: Time Warner Inc., (Time Warner) reported 9.2 percent year-over-year (y-o-y) growth in revenue for the third quarter ended 30 September 2016 (Q3-16, current quarter).

    Time Warner reported total revenue of $7,167 million for the current quarter versus $6,564 million in the corresponding year ago quarter. Among its three divisions – Turner, Home Box Office, and Warner Bros, Turner reported 8.8 percent y-o-y increase in revenue of $2,610 million in Q3-16 vis-à-vis $2,398 million in Q3-15. HBO revenue grew 4.3 percent y-o-y in the current quarter to $1,426 million from$1,367 million, while Warner Bros revenue increased 6.6 percent y-o-y to $3,402 million from $3,190 million.

    Operating Income increased 9.8 percent y-o-y to $2,014 million in Q3-16 from $1,834 million. Adjusted Operating Income increased 12.4 to $2,070 million from $1,842 million, which the company says was due to increases at all operating divisions and lower intercompany eliminations. Revenues included the unfavourable impact of foreign exchange rates of approximately $55 million in the quarter.

    Breakup of numbers

    Turner

    A 12.4 percent y-o-y) increase in subscription revenue helped boost Turner revenue, while Advertising (ad) revenue increased 1.2 percent y-o-y during the current quarter.  Time Warner’s Subscription revenue in Q3-16 was $1,480 million as against $1,317 million in the corresponding year ago quarter. The division’s ad revenue in the current quarter was $996 million, while it was $980 million in Q3-15.

    Turner’s operating income increased 8.4 percent y-o-y in Q3-16 to $1,612 million from $1,072 million in Q3-15.

    Time Warner says that Subscription revenues increased due to higher domestic rates and growth at Turner’s international networks, partially offset by the impact of lower domestic subscribers and foreign exchange rates. Advertising revenues benefited from growth at Turner’s domestic news business, partially offset by lower delivery at certain domestic entertainment networks. International advertising was essentially flat with local currency growth offset by the impact of foreign exchange rates. Content and other revenues increased due to higher international licensing revenues.

    HBO

    HBO revenues increased on account of a 5.2 percent y-o-y increase in subscription revenue in Q3-16 to $1,262 million from $1,200 million. Content and other revenue declined 1.8 percent y-o-y in the current quarter to $164 million from $167 million.

    HBO’s operating income in Q3-16 increased 2.1 percent y-o-y to $530 million from $519 million.

    The company says that Subscription revenues increased due to higher domestic rates and international growth. The decrease in Content and other revenues was due to lower domestic licensing revenues, partially offset by higher international licensing revenues.

    Warner Bros

    Warner Bros revenues increased due to a 44.9 percent y-o-y gain in its Theatrical product to $1,605 million in Q3-16 from $1,108 million. This gain was offset by a 2.1 percent y-o-y decline in Warner’s Television product to $1,430 million from #1,460 million and a 41 percent decline in its ‘Videogames and other’ revenue to $367 million from$672 million.

    The company says that Theatrical revenues increased due to the box office releases of Suicide Squad, The Legend of Tarzan, Sully and Lights Out. Videogames revenues declined due to the comparison to the launch ofLEGO Dimensions and carryover revenues from Mortal Kombat X in the prior year quarter.

    Warner Operating Income increased 11.2 percent ($43 million) y-o-y in the current quarter to $428 million from $385 million, due to the increase in revenues, partially offset by higher costs of revenues associated with the mix of film releases.

    Company speak

    Time Warner chairman and CEO Jeff Bewkes said, “We had a strong third quarter, which keeps us on track to exceed our original 2016 outlook and underscores our leadership in creating and distributing the very best content. In television, HBO took home more Primetime Emmy Awards than any other network for the 15th consecutive year and Time Warner’s divisions won a total of 40 Emmys, more than any other company. CNN’s standout election coverage made it the #1 news network in primetime among adults 18-49 for the fourth consecutive quarter and Turner’s momentum doesn’t stop there. Year-to-date, TBS, TNT and Adult Swim are three of the top five ad-supported cable networks in primetime among adults 18-49. In film, Warner Bros. had a strong quarter led by Suicide Squad and has the #1 release of the fall in Sully, while anticipation is off the charts for J.K. Rowling’s Fantastic Beasts and Where to Find Them, which hits the big screen on November 18.”

    Bewkes continued, “The agreement we announced on October 22 to be acquired by AT&T Inc. represents a great outcome for our shareholders and an excellent opportunity to drive long-term value well into the future. Combining with AT&T is the natural next step in the evolution of our business and allows us to significantly accelerate our most important strategies.”

  • Q3-16: Time Warner revenue up 9.2 percent

    Q3-16: Time Warner revenue up 9.2 percent

    BENGALURU: Time Warner Inc., (Time Warner) reported 9.2 percent year-over-year (y-o-y) growth in revenue for the third quarter ended 30 September 2016 (Q3-16, current quarter).

    Time Warner reported total revenue of $7,167 million for the current quarter versus $6,564 million in the corresponding year ago quarter. Among its three divisions – Turner, Home Box Office, and Warner Bros, Turner reported 8.8 percent y-o-y increase in revenue of $2,610 million in Q3-16 vis-à-vis $2,398 million in Q3-15. HBO revenue grew 4.3 percent y-o-y in the current quarter to $1,426 million from$1,367 million, while Warner Bros revenue increased 6.6 percent y-o-y to $3,402 million from $3,190 million.

    Operating Income increased 9.8 percent y-o-y to $2,014 million in Q3-16 from $1,834 million. Adjusted Operating Income increased 12.4 to $2,070 million from $1,842 million, which the company says was due to increases at all operating divisions and lower intercompany eliminations. Revenues included the unfavourable impact of foreign exchange rates of approximately $55 million in the quarter.

    Breakup of numbers

    Turner

    A 12.4 percent y-o-y) increase in subscription revenue helped boost Turner revenue, while Advertising (ad) revenue increased 1.2 percent y-o-y during the current quarter.  Time Warner’s Subscription revenue in Q3-16 was $1,480 million as against $1,317 million in the corresponding year ago quarter. The division’s ad revenue in the current quarter was $996 million, while it was $980 million in Q3-15.

    Turner’s operating income increased 8.4 percent y-o-y in Q3-16 to $1,612 million from $1,072 million in Q3-15.

    Time Warner says that Subscription revenues increased due to higher domestic rates and growth at Turner’s international networks, partially offset by the impact of lower domestic subscribers and foreign exchange rates. Advertising revenues benefited from growth at Turner’s domestic news business, partially offset by lower delivery at certain domestic entertainment networks. International advertising was essentially flat with local currency growth offset by the impact of foreign exchange rates. Content and other revenues increased due to higher international licensing revenues.

    HBO

    HBO revenues increased on account of a 5.2 percent y-o-y increase in subscription revenue in Q3-16 to $1,262 million from $1,200 million. Content and other revenue declined 1.8 percent y-o-y in the current quarter to $164 million from $167 million.

    HBO’s operating income in Q3-16 increased 2.1 percent y-o-y to $530 million from $519 million.

    The company says that Subscription revenues increased due to higher domestic rates and international growth. The decrease in Content and other revenues was due to lower domestic licensing revenues, partially offset by higher international licensing revenues.

    Warner Bros

    Warner Bros revenues increased due to a 44.9 percent y-o-y gain in its Theatrical product to $1,605 million in Q3-16 from $1,108 million. This gain was offset by a 2.1 percent y-o-y decline in Warner’s Television product to $1,430 million from #1,460 million and a 41 percent decline in its ‘Videogames and other’ revenue to $367 million from$672 million.

    The company says that Theatrical revenues increased due to the box office releases of Suicide Squad, The Legend of Tarzan, Sully and Lights Out. Videogames revenues declined due to the comparison to the launch ofLEGO Dimensions and carryover revenues from Mortal Kombat X in the prior year quarter.

    Warner Operating Income increased 11.2 percent ($43 million) y-o-y in the current quarter to $428 million from $385 million, due to the increase in revenues, partially offset by higher costs of revenues associated with the mix of film releases.

    Company speak

    Time Warner chairman and CEO Jeff Bewkes said, “We had a strong third quarter, which keeps us on track to exceed our original 2016 outlook and underscores our leadership in creating and distributing the very best content. In television, HBO took home more Primetime Emmy Awards than any other network for the 15th consecutive year and Time Warner’s divisions won a total of 40 Emmys, more than any other company. CNN’s standout election coverage made it the #1 news network in primetime among adults 18-49 for the fourth consecutive quarter and Turner’s momentum doesn’t stop there. Year-to-date, TBS, TNT and Adult Swim are three of the top five ad-supported cable networks in primetime among adults 18-49. In film, Warner Bros. had a strong quarter led by Suicide Squad and has the #1 release of the fall in Sully, while anticipation is off the charts for J.K. Rowling’s Fantastic Beasts and Where to Find Them, which hits the big screen on November 18.”

    Bewkes continued, “The agreement we announced on October 22 to be acquired by AT&T Inc. represents a great outcome for our shareholders and an excellent opportunity to drive long-term value well into the future. Combining with AT&T is the natural next step in the evolution of our business and allows us to significantly accelerate our most important strategies.”

  • Q2-16: Warner Bros pulls down Time Warner revenue 5.4 percent

    Q2-16: Warner Bros pulls down Time Warner revenue 5.4 percent

    BENGALURU: Lower videogames, home entertainment and television licensing revenues pulled down Warner Bros revenue by 19.4 percent year-over-year (y-o-y) and operating income by 9.4 percent y-o-y for the quarter ended 30 June 2016 (Q2-16, current quarter). Warner Bros contributed 38.2 percent to Time Warner Inc. (Time Warner) in Q2-16, and hence pulled down its parent’s consolidated revenue by 5.4 percent y-o-y to $6,952 million from $7,348 million in the corresponding year ago quarter.

    Time Warner operating income was almost flat y-o-y (declined 0.7 percent) in the current quarter at $1,846 million as compared to $1,849 million in Q2-15. Adjusted operating income in Q2-16 declined 5.5 percent y-o-y to $1,760 million from $1,862 million in Q2-15.

    Company speak

    Time Warner chairman and CEO Jeff Bewkes said, “We had a strong first half of 2016, which puts us ahead of our original goals for the year. Our performance reflects the creative excellence resulting from investments we’ve been making in the very best content. At the same time, we’re capitalizing on new distribution opportunities to take advantage of the growing demand for high-quality video content around the world. As an example of our creative excellence, Time Warner received 148 Primetime Emmy nominations – more than any other company – with HBO’s 94 again setting the pace for the industry. In the second quarter, TNT and TBS finished as the two highest rated ad-supported cable networks in primetime among adults 18-49, and Warner Bros. once again came out of the upfront as the leading supplier to broadcast television. Warner Bros. also gained momentum in film with recent successes, such as Central Intelligence and The Conjuring 2, and anticipation is running high for Suicide Squad, which debuts this week.”

    Bewkes continued, “Today, we also announced our 10 percent investment in Hulu LLC and that Turner has separately signed an affiliate agreement for its full suite of networks to be carried on Hulu’s live-streaming service slated for launch early next year. These are just the latest examples of our commitment to supporting innovative digital services that allow consumers to access high-quality content however they want it across a variety of platforms. We’re confident the multiple investments we’re making in these types of services position the Company to benefit from growing global demand for the strongest network brands and very best video content.”

    Segment numbers

    Time Warner has three segments – Turner – which contributed the most to revenue (43.3 percent in Q2-16), Home Box Office – the smallest segment in terms of revenue contribution (21.1 percent in Q2-16) and Warner Bros which contributed 38.2 percent to Time Warner’s revenue Q2-16.

    Turner

    Turner reported 6.5 percent y-o-y increase in revenue in Q2-16 at $3,010 million as compared to $2,827 million in Q2-15. Revenues due to increases of 11 percent ($142 million) in Subscription revenue and 6 percent ($73 million) in Advertising revenue, partially offset by a decline of 15 percent ($32 million) in Content and other revenue says the company.

    Turner’s operating income in Q2-16 was flat y-o-y at $1,130 million, while adjusted operating income increased marginally y-o-y (0.3 percent) to $1,133 million from $1,130 million. The company says that operating income was flat as the growth in revenues was offset by higher expenses, including increased programming and marketing costs.

    Home Box Office (HBO)

    HBO revenue in the current quarter increased 2 percent y-o-y to $1,467million from $1,438 million in Q2-15. Time Warner says that HBO revenue increased due to an increase of 6 percent ($72 million) in Subscription revenues partially offset by a decline of 17 percent ($43 million) in Content and other revenues.

    The segment reported 5.3 percent y-o-y decline in operating income and adjusted operating income in the current quarter to $481 million from $508 million in Q2-15. Operating income declined because the growth in revenues was more than offset by higher expenses, including increased programming and restructuring and severance costs says the company.

    Warner Bros

    As mentioned above, Warner Bros declined 19.4 percent y-o-y to $2,658 million from $3,298 due to lower videogames, home entertainment and television licensing revenues.

    The segment reported 9.7 percent y-o-y decline in operating income in Q2-16 to $308 million from $341 million.  Adjusted operating income in the current quarter declined 36.9 percent to $217 million from $344 million in Q2-15. Time Warner says that operating income declined due to the decline in revenues, partially offset by lower associated costs of revenues due to the number and mix of film and videogames releases, a $90 million gain on the April 2016 sale of Flixster and lower film valuation adjustments.

  • Q2-16: Warner Bros pulls down Time Warner revenue 5.4 percent

    Q2-16: Warner Bros pulls down Time Warner revenue 5.4 percent

    BENGALURU: Lower videogames, home entertainment and television licensing revenues pulled down Warner Bros revenue by 19.4 percent year-over-year (y-o-y) and operating income by 9.4 percent y-o-y for the quarter ended 30 June 2016 (Q2-16, current quarter). Warner Bros contributed 38.2 percent to Time Warner Inc. (Time Warner) in Q2-16, and hence pulled down its parent’s consolidated revenue by 5.4 percent y-o-y to $6,952 million from $7,348 million in the corresponding year ago quarter.

    Time Warner operating income was almost flat y-o-y (declined 0.7 percent) in the current quarter at $1,846 million as compared to $1,849 million in Q2-15. Adjusted operating income in Q2-16 declined 5.5 percent y-o-y to $1,760 million from $1,862 million in Q2-15.

    Company speak

    Time Warner chairman and CEO Jeff Bewkes said, “We had a strong first half of 2016, which puts us ahead of our original goals for the year. Our performance reflects the creative excellence resulting from investments we’ve been making in the very best content. At the same time, we’re capitalizing on new distribution opportunities to take advantage of the growing demand for high-quality video content around the world. As an example of our creative excellence, Time Warner received 148 Primetime Emmy nominations – more than any other company – with HBO’s 94 again setting the pace for the industry. In the second quarter, TNT and TBS finished as the two highest rated ad-supported cable networks in primetime among adults 18-49, and Warner Bros. once again came out of the upfront as the leading supplier to broadcast television. Warner Bros. also gained momentum in film with recent successes, such as Central Intelligence and The Conjuring 2, and anticipation is running high for Suicide Squad, which debuts this week.”

    Bewkes continued, “Today, we also announced our 10 percent investment in Hulu LLC and that Turner has separately signed an affiliate agreement for its full suite of networks to be carried on Hulu’s live-streaming service slated for launch early next year. These are just the latest examples of our commitment to supporting innovative digital services that allow consumers to access high-quality content however they want it across a variety of platforms. We’re confident the multiple investments we’re making in these types of services position the Company to benefit from growing global demand for the strongest network brands and very best video content.”

    Segment numbers

    Time Warner has three segments – Turner – which contributed the most to revenue (43.3 percent in Q2-16), Home Box Office – the smallest segment in terms of revenue contribution (21.1 percent in Q2-16) and Warner Bros which contributed 38.2 percent to Time Warner’s revenue Q2-16.

    Turner

    Turner reported 6.5 percent y-o-y increase in revenue in Q2-16 at $3,010 million as compared to $2,827 million in Q2-15. Revenues due to increases of 11 percent ($142 million) in Subscription revenue and 6 percent ($73 million) in Advertising revenue, partially offset by a decline of 15 percent ($32 million) in Content and other revenue says the company.

    Turner’s operating income in Q2-16 was flat y-o-y at $1,130 million, while adjusted operating income increased marginally y-o-y (0.3 percent) to $1,133 million from $1,130 million. The company says that operating income was flat as the growth in revenues was offset by higher expenses, including increased programming and marketing costs.

    Home Box Office (HBO)

    HBO revenue in the current quarter increased 2 percent y-o-y to $1,467million from $1,438 million in Q2-15. Time Warner says that HBO revenue increased due to an increase of 6 percent ($72 million) in Subscription revenues partially offset by a decline of 17 percent ($43 million) in Content and other revenues.

    The segment reported 5.3 percent y-o-y decline in operating income and adjusted operating income in the current quarter to $481 million from $508 million in Q2-15. Operating income declined because the growth in revenues was more than offset by higher expenses, including increased programming and restructuring and severance costs says the company.

    Warner Bros

    As mentioned above, Warner Bros declined 19.4 percent y-o-y to $2,658 million from $3,298 due to lower videogames, home entertainment and television licensing revenues.

    The segment reported 9.7 percent y-o-y decline in operating income in Q2-16 to $308 million from $341 million.  Adjusted operating income in the current quarter declined 36.9 percent to $217 million from $344 million in Q2-15. Time Warner says that operating income declined due to the decline in revenues, partially offset by lower associated costs of revenues due to the number and mix of film and videogames releases, a $90 million gain on the April 2016 sale of Flixster and lower film valuation adjustments.

  • Q1-2015: Turner record results overcome Warner Bros, HBO downturn for Time Warner

    Q1-2015: Turner record results overcome Warner Bros, HBO downturn for Time Warner

    BENGALURU: Turner’s record adjusted operating income growth of 26 per cent to $1128 million for Q1-2015 as compared to the $895 million in Q1-2014 was offset in part by declines at Warner Bros. and Home Box Office (HBO) says Time Warner Inc.

     

    Time Warner’s adjusted operating income grew 11.6 per cent to a record $1814 million during the quarter ended 31 March, 2015 (Q1-2015, current quarter) as compared to the $1626 million in Q1-2014. Time Warner revenue was up 4.8 per cent to $7127 million in Q1-2015 as compared to the $6803 million during the corresponding quarter of last year. The revenue increase was due to growth in all divisions says the company.

     

    Time Warner chairman and CEO Jeff Bewkes said, “We got off to a very strong start in 2015, with revenues up five per cent, and adjusted operating income growing 12 per cent to a quarterly record of $1.8 billion. This led to a 23 per cent increase in adjusted EPS and puts us on track to achieve our goals for the year. We accomplished a lot in the quarter, led by Turner, which had its best quarter ever, with audience growth across a number of its networks. The NCAA Men’s Basketball Tournament was a huge multiplatform success, with its highest average television viewership in over two decades helping make TBS the #1 ad-supported cable network in primetime among adults 18-49 in the quarter. And March Madness Live served more than 80 million live video streams and grew its usage by almost 20 per cent over last year’s tournament. Warner Bros. led the domestic box office for the quarter on the strength of American Sniper, which brought in well over $500 million globally. Warner Bros. also continued to lead the industry in television production, including the #1 comedy and unscripted series among adults 18-49 on television this season. HBO once again grew domestic subscribers in the quarter while continuing to gain acclaim for groundbreaking programming such as the recent documentaries Going Clear: Scientology and The Prison of Belief and The Jinx: The Life and Deaths of Robert Durst. The return of Game of Thrones reached a new premiere high, while also providing the backdrop for the highly-anticipated launch of HBO Now, our standalone streaming version of HBO – which is off to a great start. Reflecting our strong commitment to provide direct returns to shareholders, we returned more than $1.4 billion in dividends and share repurchases year-to-date.”

     

    Segment Results

     

    Turner

    Turner reported 4.5 per cent growth in revenue to $2710 million in Q1-2015 from $2593 million in Q1-2014. Turner’s adjusted operating income has been mentioned above.

     

    The company says that Turner benefited from growth of four per cent ($42 million) in advertising revenues, three per cent ($38 million) in subscription revenues and 25 per cent ($37 million) in content and other revenues.

     

    Turner advertising revenues benefited from growth at Turner’s domestic businesses mainly due to the 2015 NCAA Division I Men’s Basketball Championship tournament (NCAA Tournament) and growth at Turner’s news businesses. Subscription revenues grew due to higher domestic rates partially offset by lower domestic subscribers. Both international advertising and international subscription revenue growth were more than offset by the impact of foreign exchange rates. The increase in content and other revenues was due to higher subscription video-on-demand revenues.

     

    Turner’s adjusted operating income increased 26 per cent primarily due to higher revenues and lower expenses, including lower marketing, programming and general and administrative costs, largely as a result of operational efficiency initiatives and timing. Programming costs declined three per cent due primarily to timing and lower syndicated programming expenses as a result of the abandonment of certain programming in 2014.

     

    HBO

     

    Home Box Office revenue in Q1-2015 was up 4.4 per cent to $1398 million as compared to the $1339 million in Q1-2014. Adjusted operating income fell 1.3 per cent to $458 million in Q1-2015 from $468 million in the corresponding year ago quarter.

     

    According to the company, HBO revenues grew four per cent and reflect increases of four per cent ($49 million) in subscription revenues and five per cent ($10 million) in content and other revenues. Subscription revenues increased primarily due to higher domestic rates, partially offset by the transfer to Turner of the operation of HBO’s basic cable network in India. The increase in content and other revenues reflected higher home entertainment revenues and higher international licensing revenues.

     

    HBO adjusted operating income declined one per cent ($6 million) to $458 million, as higher revenues were more than offset by higher programming, distribution and marketing costs. Programming costs grew nine per cent, primarily due to increased expenses for original programming. Distribution costs increased primarily due to higher participation expenses. The increase in marketing costs was primarily related to the launch of HBO Now.

     

    Time Warner informs that through the first two weeks, the fifth season premiere of Game of Thrones totalled 18.1 million gross viewers, over one million more viewers than the prior season’s first episode after the same period of time. In April 2015, Home Box Office launched HBO Now, its stand-alone streaming service, in the US.

     

    Warner Bros

     

    Warner Bros revenue grew 4.3 per cent to $3199 million in the current year from $3066 million in Q1-2014. Adjusted operating income declined 13.2 per cent to $330 million in Q1-2015 from $380 million reported in the corresponding year ago quarter.

     

    Warner Bros revenue increase, reflects higher television licensing revenues primarily due to the subscription video-on-demand sale of Friends and higher revenues from videogames. Revenues also benefited from growth in theatrical revenues led by the strong performance of American Sniper. The increase was partially offset by the effect of foreign currency exchange rates.

     

    Adjusted Operating Income declined 13.2 per cent, as higher revenues were more than offset by higher film and advertising costs due to the mix of theatrical releases and videogame product.

     

    Through 27 April, American Sniper grossed over $540 million at the worldwide box office. On 9 April, Warner Bros., its TT Games business and The Lego Group announced Lego Dimensions, a videogame experience that combines physical Lego brick building toys based on multiple franchises, including Warner Bros.’ DC Comics, The Lord of the Rings and The Lego Movie, with interactive console gameplay.