Time Warner nearly doubles profits to reach $1.29BN
Michelle Clancy | 01-05-2014
Media giant Time Warner had a nice turnaround in earnings for its first quarter, reporting a $1.29 billion profit, or $1.42 per share, up from just $754 million, or $0.79 per share, one year ago.
The firm (not to be confused with the No 2 US cable MSO and $45 billion target of Comcast's affections, Time Warner Cable), clocked revenues of $7.55 billion in the quarter, compared with the prior-year figure of $6.94 billion, beating analyst estimates of $6.61 billion. Excluding Time Inc, which it's in the process of divesting, quarterly revenues increased 10% to $6.8 billion in the first quarter of 2014 due to growth at Warner Bros, Turner and Home Box Office.
Including Time Inc, adjusted income per share from continuing operations were $0.91, a 20% increase from $0.76 last year and beating analyst expectations of $0.88 for the quarter. Excluding Time Inc, the firm posted adjusted earnings per share of $0.97, versus $0.77 for the year-ago quarter, reflecting higher adjusted operating income and fewer shares outstanding.
Further, the board declared a regular quarterly cash dividend of $0.3175 per share, payable in cash on 15 June 2015 to stockholders of record as of May 31, 2014.
Time Warner also updated its full-year 2014 outlook. With the company's separation of Time Inc likely to be completed in the second quarter of 2014, Time Warner expects its full-year growth rate in adjusted income per share to be in the low teens off a 2013 adjusted earnings per share base of $3.51. Analysts are more bullish and expect the company to report $3.94 per share for 2014.