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Tag: Time Warner

  • Time Warner extends CEO Jeff Bewkes’ contract through 2020

    Time Warner extends CEO Jeff Bewkes’ contract through 2020

    MUMBAI: Time Warner Inc has extended the term of the company’s chairman and CEO Jeff Bewkes’ employment agreement another three years through 2020.

     

    “The Board of Directors is delighted that Jeff has agreed to extend his employment agreement for another three years. Since becoming CEO, Jeff has transformed the company to focus on video content, capitalized on the combined strength of Turner, HBO, and Warner Bros., and delivered consistently strong operating and financial performance,” said Time Warner lead independent director Steve Bollenbach.

     

    During the time Bewkes has served as CEO, Time Warner has delivered a total shareholder return of 162 per cent, well ahead of both the S&P 500 and the average return of the Company’s media peers.

     

    Bollenbach added, “More importantly, Jeff has developed and is executing the right long-term strategy for our company in a changing media landscape: one that uses the scale of our film and television businesses not just to create compelling video content that appeals to an increasingly diverse, worldwide audience, but also to lead the industry in developing innovative ways of distributing that content to consumers on both traditional and emerging platforms. We are very fortunate to have Jeff at the helm as we move forward with a strategy that positions Time Warner for sustainable success far into the future.”

     

    The agreement does not change Bewkes’ compensation, which consists of base salary, annual bonus, and long-term equity incentives.

     

    Prior to being named chairman and CEO in 2009, Bewkes was appointed as Time Warner’s president and CEO in 2008. He was president and COO from January 2006 to December 2007 and chairman of the Entertainment and Networks group from July 2002 to December 2005. Before joining the corporate management of Time Warner, Bewkes served as chairman and CEO of HBO from May 1995 to July 2002, and as president and COO of HBO from September 1991 to May 1995.

  • LeBron James’ Uninterrupted gets $15.8 m investment from Time Warner

    LeBron James’ Uninterrupted gets $15.8 m investment from Time Warner

    MUMBAI: Uninterrupted, the multimedia network for exclusive sports lifestyle content created by international icon LeBron James and business partner Maverick Carter, has aligned with two Time Warner companies namely Warner Bros. Entertainment, and existing partner Turner Sports, to raise $15.8 million in new financing.

     

    The additional capital will allow the growing athlete point-of-view platform to develop exclusive content, elevate the brand, expand to additional platforms, and further engage potential partners.

     

    “The best thing about Uninterrupted is there are so many creative opportunities for athletes to tell their stories. I’m excited to be partnering with important, innovative companies like Warner Brothers and Turner to keep building ‘Uninterrupted’ as a place for athletes to go to connect with fans and share their stories in a different way,” said James.

     

    “With the unique Uninterrupted platform, there is a real opportunity to create a special business that athletes, brands, and media partners can come together to create and distribute creative content,” added Uninterrupted CEO Maverick Carter. “Whether it’s through real-time videos, original digital series, or documentaries, Uninterrupted provides that creative outlet for athletes to share their stories in a way they can’t anywhere else.”

     

    “LeBron and Maverick bring incredible energy, focus and creativity to everything they do and are excellent partners with us in TV, film and digital,” said Warner Bros. Television Group president business and strategy Craig Hunegs. “Joining forces with LeBron, other world-class athletes and Bleacher Report to aggressively build Uninterrupted was an easy decision that’s great for fans and great for Warner Bros.”

     

    In addition to having an equity stake in the company, Turner Sports will now serve as the primary sales arm for the newly expanded Uninterrupted venture. Building on its existing role as the platform’s original content host, Turner’s Bleacher Report and Uninterrupted will have a preferred content relationship.

     

    “In collaboration with Warner Bros., Turner Sports is thrilled to expand its relationship with Uninterrupted as a leading platform for influential athletes to share unfiltered messages directly with their passionate fans,” said Turner Sports president Lenny Daniels. “Uninterrupted has been a perfect fit with Bleacher Report’s mission to provide compelling, mobile- and social-first content that drives engagement with sports fans in an authentic way and we look forward to further growing the reach of this popular multimedia platform.”

     

    Part of Uninterrupted’s planned long-term growth includes expansion onto new platforms, with the venture today announcing a new multi-year deal with go90, a mobile-first platform, to provide content, original series, and exclusive athlete point-of-view videos. The go90 platform becomes Uninterrupted’s third distribution stream following the multimedia company’s presence on Turner’s Bleacher Report and the recently announced partnership with Facebook to host 360 videos including the five-episode Uninterrupted original series Striving for Greatness, featuring exclusive behind-the-scenes footage of James’ unparalleled preparation for his pursuit of another title in his 13th NBA season. Access go90 by simply downloading the app in the App Store or Google Play.

     

    “Bringing audiences closer to what they love is what go90 is all about, so to team with the creators at ‘Uninterrupted’ makes a ton of sense,” added go90 SVP of consumer products Brian Angiolet. “If you have seen any of these rare, real-time videos and have taken in a few of the interesting athlete perspectives, then I have no doubt you’re excited about what’s coming next from Uninterrupted.”

  • Time Warner revenues up 5% to $6.6 billion led by HBO & Warner Bros

    Time Warner revenues up 5% to $6.6 billion led by HBO & Warner Bros

    MUMBAI: Time Warner Inc’s revenue in the third quarter ended 30 September, 2015 was up five per cent to $6.6 billion. The revenue growth was led by Home Box Office (HBO) and Warner Bros, which was partially offset by higher intercompany eliminations and a decline at Turner. 

     

    Adjusted Operating Income grew 85 per cent to $1.8 billion due to growth across all operating divisions, reflecting the absence of programming charges incurred in 2014 at Turner and lower restructuring and severance charges across all segments, partially offset by higher intercompany eliminations.

     

    Revenues and Adjusted Operating Income included the unfavorable impact of foreign exchange rates of $290 million and $160 million, respectively, in the quarter. Operating Income increased 89 per cent to $1.8 billion.

     

    Time Warner chairman and CEO Jeff Bewkes said, “We had another very good quarter, with revenues up five per cent and strong growth in Adjusted Operating Income, which totaled $1.8 billion. Our revenue growth was led by Warner Bros. and Home Box Office, and illustrated how our investments in great content have been paying off in our traditional television businesses, as well as in newer areas such as video games. In September, HBO received a record 43 Primetime Emmy Awards, the most of any network for the 14th  consecutive year. That included 12 awards for Game of Thrones, setting a record for a series in a single year,” he added.

     

    The company posted Adjusted Diluted Income per Common Share from Continuing Operations (Adjusted EPS) of $1.25 versus $1.22 for the prior year quarter. Excluding a net tax benefit of $639 million, programming charges at Turner and restructuring and severance charges in the prior year quarter, Adjusted EPS would have been $0.97 in the prior year quarter. Diluted Income per Common Share from Continuing Operations was $1.26 compared to $1.11 in the prior year quarter.

     

    For the first nine months of 2015, Cash Provided by Operations from Continuing Operations reached $3 billion and Free Cash Flow totaled $2.9 billion. As of 30 September, 2015, net debt was $21.2 billion, up from $19.8 billion at the end of 2014, due to share repurchases, dividends and investments and acquisitions, partially offset by the generation of Free Cash Flow.

     

    Segment Performance

     

    Time Warner’s segments performance for the third quarter of 2015 is as follows:

     

    TURNER

     

    Revenues decreased two per cent ($48 million) to $2.4 billion, due to declines of 15 per cent ($18 million) in Content and other revenues, one per cent ($17 million) in Subscription revenues and one per cent ($13 million) in Advertising revenues.

     

    Content and other revenues decreased due to lower subscription video-on-demand (VOD) revenues. The decline in Subscription revenues was due to the impact of foreign exchange rates and a decline in domestic subscribers, partially offset by higher domestic rates and local currency growth at Turner’s international networks. Advertising revenues decreased due to the impact of foreign exchange rates and the absence of NASCAR programming, partially offset by local currency growth at Turner’s international networks. Domestic advertising was flat in the quarter.

     

    Adjusted Operating Income increased 206 per cent ($721 million) to $1.1 billion, as the decline in revenues was more than offset by lower expenses, including decreased programming costs and lower restructuring and severance costs. Programming costs decreased 45 per cent primarily due to the absence of the prior year quarter’s $482 million of charges related to Turner’s decision to no longer air certain programming. Excluding these charges in the prior year, programming costs decreased in the high-single digits mainly due to the absence of NASCAR programming.

     

    Operating Income increased 218 per cent ($735 million) to $1.1 billion.

     

    TNT’s NBA Opening Night doubleheader averaged 2.9 million total viewers, up 24 per cent over last year, and generated double-digit growth across all key demographics. TBS’ Major League Baseball postseason coverage averaged 6.3 million total viewers, up close to 50 per cent compared to last year, and was the network’s most watched postseason ever. For the 30th consecutive quarter, Adult Swim was ad-supported cable’s #1 total day network among adults 18-34, and it was #1 among adults 18-49 in the third quarter. CNN’s recent coverage of the Republican presidential debate garnered over 23 million average viewers – making it CNN’s most watched program ever – and the Democratic presidential debate reached over 15 million average viewers – making it the most watched Democratic debate ever on cable. CNN continued to grow primetime ratings across all key demographics, up 39 per cent and 35 per cent for adults 18-49 and 25-54, respectively, in the third quarter. Cartoon Network was once again the only top 3 kids network to grow ratings in the quarter, and ranked as the #1 ad-supported cable network in total day ratings among kids 6-11.

     

    HOME BOX OFFICE

     

    Revenues increased five per cent ($63 million) to $1.4 billion, due to increases of four per cent ($44 million) in Subscription revenues and 13 per cent ($19 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 reflected higher domestic licensing revenues.

     

    Adjusted Operating Income increased 37 per cent ($139 million) to $519 million, reflecting higher revenues and lower expenses. The decrease in expenses was mainly due to lower restructuring and severance costs as well as decreased distribution and programming costs, partially offset by higher marketing and technology costs. Programming costs decreased six per cent primarily reflecting lower acquired theatrical programming costs. The higher marketing and technology costs related to HBO NOW, HBO’s stand-alone streaming service.

     

    Operating Income increased 37 per cent ($139 million) to $519 million.

     

    WARNER BROS.

     

    Revenues increased 15 per cent ($415 million) to $3.2 billion, reflecting higher video games and television licensing revenues, partially offset by the impact of foreign exchange rates, the absence of revenues from a patent license and settlement agreement in the prior year quarter and lower theatrical revenues. The increase in video games revenues was primarily due to the releases of LEGO Dimensions and Mad Max, as well as carryover revenues from several titles, including Mortal Kombat X and Batman: Arkham Knight. Television licensing revenues benefited from the initial cable and off-network availability of 2 Broke Girls and the initial cable availability and subscription video-on-demand licensing of Person of Interest.

     

    Adjusted Operating Income increased 61 per cent ($147 million) to $388 million, due to the increase in revenues, lower theatrical and video games valuation adjustments and decreased restructuring and severance costs, partially offset by higher print and advertising costs.

     

    Operating Income increased 62 per cent ($148 million) to $385 million.

     

    Season-to-date among adults 18-49: Blindspot and Supergirl ranked as the top two new series, The Voice ranked as the #1 non-scripted series and The Big Bang Theory ranked as the #1 comedy and #2 series overall in primetime on broadcast television. For the first nine months of the year, Warner Bros. ranked as the top US video game publisher, and Mortal Kombat X was the #1 videogame.

     

    CONSOLIDATED NET INCOME AND PER SHARE RESULTS

     

    Third-Quarter Results

     

    Adjusted EPS was $1.25 for the three months ended 30 September, 2015, compared to $1.22 in last year’s third quarter. The increase in Adjusted EPS primarily reflects higher Adjusted Operating Income and fewer shares outstanding, offset in part by higher taxes as a result of the $639 million net tax benefit in the third quarter of 2014 mainly related to the reversal of certain tax reserves in connection with an audit settlement.

     

    For the three months ended 30 September, 2015, the company had Income from Continuing Operations of $1 billion, or $1.26 per diluted common share. This compares to Income from Continuing Operations attributable to Time Warner common shareholders in the third quarter of 2014 of $966 million, or $1.11 per diluted common share.

     

    For the third quarters of 2015 and 2014, the company had Net Income of $1.0 billion and $967 million, respectively.

  • Rupert Murdoch lauds Modi; US CEOs call for speedy TV digitisation

    Rupert Murdoch lauds Modi; US CEOs call for speedy TV digitisation

    MUMBAI: There are some leaders who leave a good impression and then there are those who leave a lasting impression on others’ mind, and Indian Prime Minister Narendra Modi definitely belongs to the latter type. 

    In his recent meeting with the Fortune 500 CEOs at the iconic Waldorf Astoria Hotel in New York, Modi not only successfully brought up the burning issues of Indian media and digitisation to the world platform, but also instilled a sense of camaraderie amongst the executives, whose net worth, as per the media buzz, was $4.5 trillion!

    The proof of the pudding lay in the superlative address that 21st Century Fox chairman Rupert Murdoch gave Modi through his tweet after the event.

    “Great hour with Indian PM Modi. Best leader with best policies since independence, but massive task to achieve in most complex nation,” said Murdoch.

    Apart from the senior Murdoch, the CEOs present at the roundtable meeting chaired by Modi included 21st Century Fox CEO James Murdoch, News Corp  CEO Robert Thompson, Star India CEO Uday Shankar, WPP CEO Martin Sorrell, Discovery Communications president and CEO David Zaslav, Sony Entertainment CEO Michael Lynton, Interpublic Group of Companies CEO Michael Roth, Vice Media CEO Shane Smith, Time Warner CEO Jeff Bewkes, A&E Networks CEO Nancy Dubuc, Visy Industries chairman Anthony Pratt, Route One Investment Company’s William Duhamel and ValueAct Capital CEO Jeff Ubben.

    While the CEOs were enthusiastic about the digital transformation that is taking place in India through the Digital India initiative, they called for speeding up of television digitisation, and strengthening of the cellular (mobile) infrastructure.

    According to the head honchos, the current strong trajectory of the Indian economy made it at a unique moment to accelerate growth in this sector.

    Post the meeting, Modi tweeted his pleasure in seeing the executives enthusiastic about being part of Digital India and the role of media in it. “Met top American CEOs from media & entertainment sector. They were enthusiastic about the change @_DigitalIndia initiative in driving,” he said before craftily leading in the major issues that were discussed among the executives in the congregation earlier.

    “My interaction with Fortune 500 CEOs was on investment opportunities in India & why they must come & @makeinindia! Digital technology has a vital role in making democracy stronger & in overall human resource development,” he tweeted.

    Modi painted the government's vision to connect the 600,000-odd villages in India with broadband and emphasised that digital technology will increasingly play a major role in further strengthening democracy and India's development narrative. He also highlighted how Digital India posed as a great opportunity for the international media companies.

    As evident from the PM’s tweets, foreign direct investment (FDI) formed a large chunk of the round table and the 90 minute soiree. “Foreign direct investment all over the world has fallen. But in India, it increased by 40 per cent. This reflects confidence in the Indian economy,” Modi was heard pointing out the executives right before they sat down for dinner. “Reform in governance is my number one priority. We are for simplified procedures, speedy decision-making, transparency and accountability,” he assured the prospective investors.

    The topic that dominated most of the evening was the role that the media and entertainment industry can play in development and generation of employment opportunities in India.

    Modi also touched upon the importance of a smoother Intellectual Property Rights (IPR) regime in the digital era.

    Pegging his argument on India’s value for intellectual property he said, “We are committed to protecting IPR, that's essential to fostering creativity.”

    He also upheld the importance of regional languages in India and suggested to the CEOs that India represents both the biggest opportunity and the biggest challenge for them. He also urged them to keep regional languages in mind, as they firm up investment plans for India. “Explained to media CEOs why India is a great opportunity for them & how many regional languages makes India even more special to invest in,” Modi tweeted.

    “The government has already undertaken a massive amount of reforms. Key message from the US companies was keep doing what you are doing. I had a great meeting, there was a constructive dialogue in the spirit of collaboration. We are looking at India trying to get foreign direct investment,” said J P Morgan CEO James Dimon.

    As per  India's foreign office spokesperson Vikas Swarup, Modi took keen interest to personally interact with every CEO, and understand the executives’ areas of concern that his government could address and resolve.

    The Prime Minister emphasised that he saw a key role for digital technology in further strengthening democracy, and in India’s development narrative.

  • Time Warner promotes Priya Dogra as SVP, mergers & acquisitions

    Time Warner promotes Priya Dogra as SVP, mergers & acquisitions

    MUMBAI: Time Warner Inc. has promoted Priya Dogra as senior vice president, mergers and acquisitions.

     

    In this role, Dogra will oversee Time Warner’s global mergers and acquisitions efforts to progress the company’s long-term corporate strategies and help define capital allocation priorities.

     

    Time Warmer executive vice president and CFO Howard Averill said, “We are thrilled that Priya will now lead our M&A group. She has been instrumental in originating, evaluating and executing critically important transactions across the company. Given her deep understanding of the industry, strong transaction execution skills and collaborative nature, we couldn’t hope for a more effective leader for this group.”

     

    Dogra joined Time Warner in 2009 as a director in the mergers and acquisitions group, and became the group’s vice president three years later. In this role, she worked closely with Time Warner’s divisions and served as the primary corporate liaison for divisional corporate development functions including the acquisition of content assets and television networks internationally as well as investments in digital media and over the top assets across the company.

     

    Prior to joining Time Warner, Dogra was vice president in the Technology, Media and Telecom investment banking group at Citigroup where she spent seven years based out of the New York, London and Toronto offices covering numerous clients such as Time Warner, Sony, Discovery and Bertelsmann, and advising on a broad range of transactions including acquisitions, divestitures and financings.

  • FanDuel gets $275 million funding from KKR, Google Capital, Time Warner

    FanDuel gets $275 million funding from KKR, Google Capital, Time Warner

    MUMBAI: FanDuel Inc, the one-day fantasy sports operator, has closed $275 million in Series E financing, bringing total capital raised to $363 million.

     

    The oversubscribed round was led by global investment firm KKR with Google Capital and Time Warner Investments, together with Turner Sports, also joining.

     

    A number of NFL and NBA team owners participated in the round along with previous investors, including Shamrock Capital, NBC Sports Ventures, Comcast Ventures, Bullpen Capital, Pentech Ventures and Piton Capital.

     

    The company continues to grow rapidly with paid active users growing 300 per cent from the same period last year. The financing will be used to increase customer acquisition efforts across the US, accelerate the introduction of new products, features and growth initiatives to serve the company’s mission to create the ultimate fan experience, and to build out its industry-leading management team.

     

    “Having partners like KKR, Google Capital and Time Warner/Turner Sports invest in FanDuel underscores the way this company is transforming sports entertainment. This roster of investors, with expertise across finance, technology, advertising and sports entertainment, is committed to the growth and success of FanDuel as a game-changer for the sports industry,” said FanDuel CEO and co-founder Nigel Eccles.

     

    “We are thrilled to support FanDuel’s next phase of growth given the company’s leading position in the daily fantasy market, model operating principles, highly efficient customer acquisition capabilities, and visionary management team. FanDuel is poised to become the most engaging digital entertainment platform for sports fans around the world,” added KKR’s Ted Oberwager.

     

    The news comes even as FanDuel hired an experienced team of over 40 developers based in Orlando, Florida focused exclusively on sports and mobile gaming and finalizing exclusive, multiyear partnerships with 13 NBA teams and 16 NFL teams. 

     

    Mesa Global, which was recently acquired by Houlihan Lokey, served as FanDuel’s investment banker.

  • Time Warner seeks shareholders vote on tobacco depictions in movies

    Time Warner seeks shareholders vote on tobacco depictions in movies

    MUMBAI: Warner Bros’ parent company Time Warner has become the first company to hold a shareholder vote on smoking in movies. The resolution was submitted by shareholder advocacy non-profit As You Sow and non-profit healthcare provider Trinity Health.

     

    According to a 2012 U.S. Surgeon General report, “there is a causal relationship between depictions of smoking in the movies and the initiation of smoking among young people.”

     

    Based on a subsequent 2014 Surgeon General report, the Centers for Disease Control and Prevention (CDC) concluded in 2014: “Giving an R-rating to future movies with smoking would… prevent one million [1,000,000] deaths from smoking among children alive today.”

     

    “This is a historic opportunity for Time Warner. For the first time, shareholders will be informed that the company’s products are putting millions of children at risk,” said As You Sow CEO Andrew Behar.

     

    At the recent Walt Disney annual meeting, Disney CEO Bob Iger announced that Disney would prohibit smoking in all future films. Disney is the first major movie studio to make such a public announcement, although the language of the policy has not yet been released.

     

    “More companies will follow the example of Disney,” said newly-appointed U.S. Surgeon General Vivek Murthy, at his swearing-in ceremony in April. “We could save over a million children from premature death if every film studio followed suit.”

     

    As You Sow published a memo in support of the Time Warner shareholder resolution, noting that Time Warner’s policy to reduce tobacco depictions in movies allows for “compelling creative reasons.”

     

    The number of tobacco images that Time Warner delivers to kids each year is subject to extreme fluctuations. According the University of California San Francisco’s Center for Tobacco Control Research and Education, Time Warner eliminated nearly all smoking in its youth-rated films in 2010. But in 2013, its films accounted for 5.6 billion impressions, which was 44 per cent of all tobacco impressions delivered by top-grossing youth-rated films.

     

    “Tobacco in youth-rated movies is an unnecessary liability. This crisis in an opportunity for the company to demonstrate its leadership and its commitment to health,” said As You Sow environmental health program manager Austin Wilson.

  • Time Warner appoints Mitchell A Klaif as CIO

    Time Warner appoints Mitchell A Klaif as CIO

    MUMBAI: Mitchell A Klaif has taken over as senior vice-president and chief information officer (CIO) of Times Warner.

     

    Klaif will oversee the corporate information technology group and will lead the execution of Time Warner’s enterprise-wide information technology strategy.

     

    Until now, Klaif had been for 17 years at Time, including seven years as the company’s chief information officer and chief technology officer.

     

    In his previous role, Klaif was responsible for overseeing information technology throughout Time worldwide, including technology and e-commerce for more than 115 magazines, 40 websites and Time’s direct marketing businesses.

  • Time Warner reports y-o-y increase in Q3-2014

    Time Warner reports y-o-y increase in Q3-2014

    BENGALURU: Time Warner Inc (Time Warner) posted 34 per cent higher adjusted EPS for Q3-2014 (quarter ended 30 September 2014) at US$ 1.22 (on a lower adjust outstanding share base) and better than last quarter’s US$ 0.98.

     

    Diluted income per share in Q3-2014 was US$1.11 (average 870.2 million diluted shares outstanding) versus the US$ 1.25 (average 938.8 million diluted shares outstanding) in Q3-2013 and US$ 0.98 (average 894.2 million diluted shares outstanding) in Q2-2014.

     

    For Q3-2014, Time Warner reported total revenue (TIO) of US$  6243 million, which was 3.3 per cent more y-o-y at US$ 6042 million, but 8 per cent less that the US$ 6788 million in Q2-2014. Total adjusted operating income at US$ 993 million in Q3-2014 was 37.5 per cent less than the US$ 1589 million in Q3-2013 and 38.6 per cent lower than the US$ 1618 million in Q2-2014.

     

    Time Warner chairman and CEO Jeff Bewkes said, “We had another good quarter, featuring solid revenue growth as well as strong growth in Adjusted EPS. As we discussed at our Investor Event last month, we’ve refocused the company over the past few years to aggressively pursue the huge global opportunities we see in video content. And once again, we are seeing the benefits of our increased investments in great content and storytelling. In the quarter, both Turner and HBO had double-digit increases in subscription revenues, reflecting the growing strength and appeal of their programming. HBO received 19 Primetime Emmy Awards, the most of any network for the 13th straight year, including five Emmys for newcomer True Detective. At Turner, TNT ranked as ad-supported cable’s #1 primetime network for the second consecutive quarter, TBS was the #2 ad-supported cable network in primetime among adults 18-49 and 25-54, and Adult Swim again shined as ad-supported cable’s #1 total day network among its key adult demos. Turner’s extension last month of its longstanding relationship with the NBA through the 2024-25 season is another great example of investing in distinctive programming that will serve us well for years to come. This fall, Warner Bros. is once again the number one producer for broadcast television, including a strong slate of new shows. Season-to-date, Gotham ranked as broadcast’s #2 new show among adults 18-49, while The Flash had the most-watched telecast ever on The CW. These shows are among five series featuring DC characters that will air this season. DC is also a key component of the ambitious film slate that Warner Bros. recently unveiled. Further demonstrating our continuing commitment to shareholder returns, so far this year we’ve returned over $5.7 billion to our shareholders in the form of share repurchases and dividends.”

     

    Time Warner has three segments that contribute to its numbers – Turner, Home Box Office (HBO) and Warner Bros (WB). Turner, which contributes about 40 per cent of TIO, disappointed with a drop in its share of adjusted operating income to 35.2 per cent versus the approximately 60 per cent during Q2-2013, Q3-2013 and Q2-2014. All of Time Warner’s segments reported y-o-y reduction of adjusted operating income in Q3-2014.

     

    Let us look at the numbers reported by the segments of Time Warner for Q3-2014

     

    Turner

     

    Turner reported revenue of US$ 2556 million (39.2 per cent of TIO), which was 4.6 per cent more than the US$  2338 million (38.7 per cent of TIO), but 11.1 per cent lower than the US$  2750 million (40.5 per cent of TIO) in the immediate trailing quarter ended June 30, 2014.

     

    Adjusted operating income from this segment fell a massive 64 per cent to US$ 350 million (35.2 per cent of total adjusted operating income) from US$ 971 million (61.1 per cent of total  operating income) and was 62.8 per cent lower than the US$ 940 million (35.2 per cent of total adjusted operating income)in Q2-2014.

     

    Here is what the company has to say about its Turner segment results:

     

    Revenues rose 5 per cent (US$ 108 million) to US$ 2.4 billion, mainly due to growth of 10 per cent (US$ 117 million) in subscription revenues and 17 per cent (US$ 12 million) in content revenues, offset in part by a decline of 2 per cent (US$ 18 million) in advertising revenues. The increase in subscription revenues was primarily due to higher domestic rates and international growth. Advertising revenues decreased due to declines at Turner’s international networks. Advertising revenues at Turner’s domestic networks were essentially flat.

     

    Adjusted Operating Income declined 64 per cent (US$ 621 million) to US$ 350 million, as higher revenues were more than offset by higher programming costs and increased restructuring and severance costs. Programming costs grew 84 per cent due to the current year quarter’s US$ 482 million of charges related to Turner’s decision to no longer air certain programming. Excluding these charges, programming costs increased in the low double digits due to higher costs associated with increased volume of original programming and the first year of Turner’s new agreement with Major League Baseball. The current year quarter included US$ 199 million of restructuring and severance costs compared to US$ 30 million in the prior year quarter. Excluding the programming and restructuring and severance charges, Adjusted Operating Income would have been US$ 1.0 billion.

     

    HBO segment

    HBO reported 9.9 per cent increase in revenue in Q3-2014 at US$   1304 million (20.9 per cent of TIO) from US$   1186 million in Q3-2013, but was 8 per cent less than the US$   1417 million (20.9 per cent if TIO) in Q2-2014.

     

    HBO’s adjusted operating income at US$   380 million (38.3 per cent of total adjusted operating income) was 4.3 per cent lower than the US$   397 million (25 per cent of total adjusted operating income) in Q3-2013 and 31.2 per cent lower than the US$   552 million (34.1 per cent of total adjusted operating income) in Q2-2014.

     

    Here is what the company has to say about its HBO segment results:

     

    Revenues grew 10 per cent (US$ 118 million) to US$ 1.3 billion, reflecting increases of 10 per cent (US$ 106 million) in subscription revenues and 7 per cent (US$ 10 million) in content revenues. The increase in subscription revenues resulted from higher domestic rates and subscribers as well as the consolidation of HBO Asia and HBO South Asia (collectively, HBO Asi”). The growth in content revenues was primarily due to increased home video revenues.

     

    Adjusted Operating Income decreased 4 per cent (US$ 17 million) to US$ 380 million, as higher revenues were more than offset by increased expenses due to higher programming and distribution costs as well as increased restructuring and severance costs. Programming costs grew 16 per cent due to increased expenses for original and acquired programming as well as the consolidation of HBO Asia. Distribution costs increased primarily due to higher participation expenses. The current year quarter included US$ 48 million of restructuring and severance costs compared to US$ 24 million in the prior year quarter. Excluding the restructuring and severance charges, Adjusted Operating Income would have been US$ 428 million.

     

    Operating Income declined 24 per cent (US$ 122 million) to US$ 380 million. The prior year quarter included a US$ 105 million gain related to Home Box Office’s acquisition of its former partner’s interests in HBO Asia in September 2013.

     

    Warner Bros (WB)

    WB reported 3 per cent growth in revenue in Q3-2014 to from US$   2775 million (44.4 per cent of TIO) from US$   2694 million (44.6 per cent of TIO) in Q3-2014, but was 3.3 per cent lower than the US$   2870 million (42.3 per cent of TIO) in Q2-2014.

     

    WB’s adjusted operating income at US$   241 million (24.3 per cent of total adjusted operating income) was 20.2 per cent lower than the US$   302 million (19 per cent of total adjusted operating income) in Q3-2014, but 2.1 per cent higher than the US$   236 million (14.6 per cent of total adjusted operating income) in Q2-2014.

     

    Here is what the company has to say about its WB segment results:

    Revenues increased 3 per cent (US$ 81 million) to US$ 2.8 billion, mainly due to growth in subscription video-on-demand revenues for television product, higher licensing of theatrical product, growth in television production, including from the acquisition of Eyeworks Group’s operations outside the U.S., and revenues from a patent license and settlement agreement. These increases were partly offset by softer performance of current year quarter theatrical releases compared to the prior year’s slate, which included Pacific Rim, The Conjuring and We’re the Millers, and lower domestic off-network television license fees.

     

    Adjusted Operating Income decreased 20 per cent (US$ 61 million) to US$ 241 million, as higher revenues were more than offset by increased restructuring and severance costs, higher film costs for television product and a value added tax accrual. The current year quarter included US$ 45 million of restructuring and severance costs compared to US$ 2 million in the prior year quarter. Excluding the restructuring and severance charges, Adjusted Operating Income would have been US$ 286 million.

     

    Operating Income declined 23 per cent (US$ 70 million) to US$ 237 million.

     

    Through 2 November, Annabelle grossed over US$ 230 million at the worldwide box office. Season-to-date, Gotham ranked as broadcast’s #2 new drama series among adults18-49. The premiere of The Flash had a total of 6.8 million total viewers in final live +7 ratings, making it The CW network’s most-watched telecast ever.

     

  • Facebook’s Mark D’Arcy to address the Ad Club

    Facebook’s Mark D’Arcy to address the Ad Club

    MUMBAI: As part of its 60th anniversary The Advertising Club has arranged an evening meet with Mark D’Arcy on 28 October in Mumbai at 6:30 pm.

    Mark D’Arcy, who is the VP and chief creative officer of the Facebook Creative Shop, leads a team of creative strategists tasked with creating and building ideas that transform how the world’s largest and most innovative marketers use Facebook to drive business growth.

    After two decades of working as a writer and CCO in advertising and media, D’Arcy joined Facebook in 2011 to better explore the creative potential of the platform. He is the founder of the Facebook Creative Council which provides the social media platform with ideas on how to engage and educate the global creative community.

    Prior to joining Facebook, D’Arcy spent seven years at Time Warner in New York as CCO of its Global Media Group. He co-developed the first truly creative media arts practice within a global media company designed to better leverage the company’s extensive television, film, print and digital assets for its key marketing partners. In 2009, he was named president of the Group and senior VP of Time Warner.

    He spent 17 years of his career in New York, before shifting to London, where he is currently based.

    D’Arcy has been widely recognised for his creativity and leadership in the creative industries and regularly speaks all around the world on the subject of creativity in social media, the transformation of marketing, the communication arts and the role and purpose of brands in society.

    He has also served as a juror on numerous international awards shows including the CLIO Awards, LIA Awards, The International ANDY Awards and in 2013 served on the inaugural Innovations Lions jury at the Cannes Lions Awards.

    The event will be held at Hotel Palladium, Lower Parel, Mumbai.