Networks make up for declines in film, TV entertainment at Time Warner
Editor | 07-11-2013
Driven by a strongly performing networks division, Timer Warner has posted its highest quarter ever for operating income, yet profit declines in film and TV entertainment took some of the gloss off a strong Q3 2013.
For its third quarter ended 30 September 2013, Time Warner reported that revenues were essentially flat at $6.9 billion as growth in the networks segment and lower intersegment eliminations were offset by declines in film and TV entertainment.
These contributed an adjusted operating income of $1.7 billion, a year-on-year increase of 8%. Adjusted operating income margin increased to 25% from 23% in the third quarter of 2012. Operating income increased 17% to $1.8 billion while operating income margin increased to 27% from 23% in the prior year quarter. Q3 2013 was the eighth time in the last nine quarters that adjusted operating income margins increased year-over-year.
Looking to stand-out performers in the quarter, Time Warner noted that in its Turner division, TBS was the second largest ad-supported cable network in prime time across adults 18-34 and 18-49, while stablemate TNT finished the quarter in a similar place among adults 25-54 in total day. The CNN news channel increased total day ratings in its key demo by 15% during the quarter while HBO marked a strong three-month period by receiving 27 prime time Emmy Awards.
Commenting on the results, Time Warner chairman and CEO, Jeff Bewkes, said: "We had another strong quarter and remain on track for another very successful year, thanks to our commitment to great storytelling across the company. Warner Bros is once again supplying more shows this season to the broadcast networks than any other studio – including the top two shows on television, The Big Bang Theory and The Voice.