You will be redirected back to your article in seconds

Time Warner Earnings Beat Projections on ‘March Madness,’ ‘American Sniper’ Success

The popularity of “March Madness” basketball and the box office success of “American Sniper” helped Time Warner easily beat quarterly earnings expectations during the first three months of the year.

Time Warner chairman Jeff Bewkes labeled the financial results a “strong start” to 2015, and investors will likely be pleased by the balance sheet.

The media giant posted earnings per share of $1.19 compared with 97 cents in the year-ago period. Revenues at the company behind HBO, Warner Bros. and Turner climbed 5% to $7.1 billion, up from $6.8 billion in the prior-year quarter. Wall Street had estimated that Time Warner would report earnings per share of $1.09 and revenue of $7 billion.

Revenues improved across each of Time Warner’s segments, increasing from $2.6 billion to $2.7 billion at Turner, jumping from $1.3 billion to $1.4 billion at HBO, and moving from $3 billion to $3.2 billion at Warner Bros. However, operating income fell 1% to $458 million at HBO, which it attributed to higher programming, distribution and marketing costs. It also fell 13% to $330 million at Warner Bros. due to higher advertising costs. The studio is riding high after fielding “American Sniper,” the Iraq War drama that shattered box office records and earned $541.7 million globally.

Turner saw its operating income climb 6% to $1.1 billion on the strength of higher advertising rates and strong ratings for its broadcast of the 2015 NCAA Division I Men’s Basketball Championship tournament.

Operating income across the company fell 13% to $1.8 billion, down from $2 billion, which the company said was largely due to $441 million it received during the prior year quarter in connection with the sale and leaseback of its space in the Time Warner Center. Net income also dropped 25% to $970 million, falling from $1.29 billion in the year-ago period.

Time Warner is hosting an earnings call with analysts on Wednesday during which it could reveal more details about the reception for HBO Now, the premium channel’s new standalone streaming service that launched in April.

Shares of Time Warner are up 1.79% at $86.50 in pre-market trading.

More Film

  • Steve Bannon appears in The Brink

    Sundance Film Review: Stephen K. Bannon in 'The Brink'

    Stephen K. Bannon drinks Kombucha (who knew?), the fermented tea beverage for health fanatics that tastes like…well, if they ever invented a soft drink called Germs, that’s what Kombucha tastes like. In “The Brink,” Alison Klayman’s fly-on-the-wall, rise-and-fall-and-rise-of-a-white-nationalist documentary, Bannon explains that he likes Kombucha because it gives him a lift; he drinks it for [...]

  • Walt Disney Archives Founder Dave Smith

    Walt Disney Archives Founder Dave Smith Dies at 78

    Walt Disney Archives founder Dave Smith, the historian who spent 40 years cataloging and preserving the company’s legacy of entertainment and innovation, died Friday in Burbank, Calif. He was 78. Smith served as Disney’s chief archivist from 1970 to 2010. He was named a Disney Legend in 2007 and served as a consultant to the [...]

  • Oscar OScars Placeholder

    Cinematographers Praise Academy Reversal: 'We Thank You for Your Show of Respect'

    Cinematographers who fought the decision to curtail four Oscar presentations have praised the Academy of Motion Picture Arts and Sciences for reversing the exclusions. “We thank you for your show of respect for the hard-working members of the film community, whose dedication and exceptional talents deserve the public recognition this reversal now allows them to enjoy,” [...]

  • Peter Parker and Miles Morales in

    'Spider-Man: Into the Spiderverse' Colored Outside the Lines

    The well-worn superhero genre and one of its best-known icons are unlikely vehicles for creating a visually fresh animated feature. But Sony Pictures Animation’s work on the Oscar-nominated animated feature “Spider-Man: Into the Spider-Verse” shows throwing out the rule book and letting everyone play in the creative sandbox can pay off big. “I think we [...]

  • Denis Villeneuve

    Denis Villeneuve's 'Dune' Gets November 2020 Release Date

    Warner Bros. has scheduled Legendary’s science-fiction tentpole “Dune” for a Nov. 20, 2020, release in 3D and Imax. “Aquaman” star Jason Momoa is in negotiations to join the “Dune” reboot with Timothee Chalamet, Javier Bardem, Rebecca Ferguson, Stellan Skarsgard, Dave Bautista, Josh Brolin, Oscar Isaac, and Zendaya. Production is expected to launch in the spring [...]

  • James Bond Spectre

    Bond 25 Moved Back Two Months to April 2020

    James Bond will arrive two months later than planned as MGM moved back the release date on the untitled Bond 25 movie from Feb. 14 to April 8, 2020 — a Wednesday before the start of Easter weekend. It’s the second delay for Bond 25. MGM and Eon originally announced in 2017 that the film [...]

  • Fast and Furious 8

    'Fast and Furious 9' Release Date Pushed Back Six Weeks

    Universal Pictures has shifted “Fast and Furious 9” back six weeks from April 10 to May 22, 2020 — the start of the Memorial Day weekend. It’s the second backwards shift for the title. In 2017, Universal moved the film back a year from April 19, 2019, to April 10, 2020. Both dates fall on [...]

More From Our Brands

Access exclusive content