Time Warner Inc. posted higher profits in the second quarter ended June 30. Reuters reports that the company saw profits rise 14%, helped by an increase in revenues at Turner Networks and the Warner Bros. studio.
“The company’s net income rose to $971 million, or $1.16 per share, in the second quarter ended June 30, from $850 million, or 95 cents per share, a year earlier,” Reuters notes. “Revenue rose 8 percent to $7.35 billion.”
CNN reports that the revenue figure was well ahead of analysts’ predictions of $6.90 billion.
“Profit dropped 8% year over year at its HBO unit, mainly because the company invested a lot of money in the April launch of HBO Now, its new Internet subscription service,” CNN reports. “But profit at Warner Bros., Time Warner’s sprawling movie and television studio, rose 46% in the quarter. Movies like ‘Entourage’ underperformed, but Warner Bros. benefited from the release of two video games, ‘Batman: Arkham Knight’ and ‘Mortal Kombat X,’ which had characters licensed from the studio.”
The streaming release of “Seinfeld” and syndication income for “The Big Bang Theory” also contributed on the TV side, helping to overcome a 1% drop in ad revenues, CNN notes. Profits at Turner, which includes TNT and CNN, were up 20%.