Time Warner Q1 Results Beat Estimates

(RTTNews) - Time Warner Inc. (TWX) reported a profit for the first quarter ended March 31, 2017 that increased about 17 percent from last year, reflecting higher Operating Income, lower interest expense, and a lower effective tax rate due in part to the Company's adoption of new guidance on accounting for tax benefits on equity-based compensation.

Both adjusted earnings per share and revenue for the quarter beat analysts' expectations.

Chairman and Chief Executive Officer Jeff Bewkes said, "We're off to a strong start to 2017, as we continue to benefit from the investments we're making in the best content while also developing new revenue streams that will drive growth and meet consumer demand for great experiences built around their favorite programming and brands."

Net income attributable to shareholders for the first-quarter of 2017 grew about 17 percent to $1.42 billion from the prior year's $1.21 billion, with earnings per share improving to $1.80 from $1.51 last year.

Income from continuing operations attributable to shareholders of $1.4 billion or $1.80 per share compared to $1.2 billion or $1.46 per share in the first quarter of 2016.

Adjusted income per share from continuing operations was $1.66, up 11% from $1.49 for the prior year quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $1.46 per share for the first-quarter. Analysts' estimates typically exclude special items.

Operating income increased 4% to $2.1 billion and Adjusted Operating Income increased 7% to $2.2 billion due to growth at Home Box Office and Warner Bros. and lower corporate expenses, partially offset by a decrease at Turner and higher intersegment eliminations.

Revenues for the quarter grew about 6% to $7.74 billion from last year's $7.31 billion due to increases at all operating divisions, partially offset by higher intersegment eliminations. Wall Street analysts had a consensus revenue estimate of $7.67 billion for the quarter.

In Turner, quarterly revenues increased 6% to $3.1 billion, due to increases of 12% in Subscription revenues and 16% in Content and other revenues, partially offset by a decline of 2% in Advertising revenues. In Home Box Office, revenues increased 4% to $1.6 billion, due to an increase of 5% in Subscription revenues, partially offset by a decline of 1% in Content and other revenues.

Warner Bros.'s revenues increased 8% to $3.4 billion, primarily due to higher television and theatrical revenues partially offset by lower videogames revenues. Television revenues increased primarily due to higher domestic licensing revenues related to certain library series.

TWX closed Tuesday's regular trading at $99.33, up $0.27 or $0.27 percent.