Video streaming, Batman drive Time Warner's profit beat
Time Warner Inc reported a better-than-expected quarterly profit, helped by higher content revenue in its Turner division as well as the release of “Batman: Arkham Knight” and “Mortal Kombat X” videogames.
Turner, owner of channels such as CNN and TNT, said in April it granted exclusive subscription video-on-demand rights to its programs from Cartoon Network and Adult Swim to video-streaming service Hulu.
The deal led to a 48 percent rise in content and other revenue at Turner in the second quarter ended June 30, Time Warner said on Wednesday.
The company also benefited from an increase in television licensing revenue at its Warner Bros studio business as channels licensed its popular “The Big Bang Theory” comedy.
Total revenue rose 8 percent to $7.35 billion, above the average analyst estimate of $6.90 billion.
Net income rose to $971 million, or $1.16 per share, from $850 million, or 95 cents per share, a year earlier.
Excluding items, Time Warner earned $1.25 per share. Analysts on average expected earnings of $1.03, according to Thomson Reuters I/B/E/S.
The company’s shares were up marginally in light premarket trading on Wednesday. Up to Tuesday’s close of $87.65, they had risen about 3 percent this year.