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Time
Warner's shares rose 2.2 percent in premarket trading on
Wednesday.
Revenues at Warner Bros. studio business rose about 15 percent
in the third quarter, helped by the releases of the "LEGO
Dimensions" and "Mad Max" videogames.
The syndication of TV shows "2 Broke Girls" and "Person of
Interest" also boosted revenue at the studio, which contributes
about 49 percent of Time Warner's total revenue.
Revenue at HBO increased 4.8 percent in the quarter as more
people signed up for popular shows such as "Game of Thrones" and
"True Detective".
HBO's heavy investments to develop original programming has paid
off, helping it prevent viewers from moving to other online
streaming services, a worry that has plagued the cable sector.
HBO, the smallest of Time Warner's three business units, is also
hardly impacted by television ratings for its shows as the
network is advertisement-free.
Media companies including Time Warner and Walt Disney Co are
remodeling their businesses to grab a larger share of the
video-streaming market as consumers increasingly take to
watching TV shows online, a trend dubbed as "cord cutting".
Time Warner's total revenue rose 5.1 percent to $6.56 billion in
the three months ended Sept. 30.
Net income attributable to Time Warner shareholders rose to
$1.04 billion, or $1.26 per share, from $967 million, or $1.11
per share. Excluding items, it earned $1.25 per share.
Analysts on average had expected a profit of $1.09 per share on
revenue of $6.51 billion, according to Thomson Reuters I/B/E/S.
Time Warner's stock had fallen about 9.5 percent this year
through Tuesday, compared with a 1.5 percent rise in the S&P 500
Movies & Entertainment index.
(Reporting By Arathy S Nair and Anya George Tharakan in
Bengaluru; Editing by Savio D'Souza)
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