Time Warner Earnings Beat Street Expectations, Helped By Success Of ‘Harry Potter’ Spinoff “Fantastic Beasts And Where To Find Them”
Time Warner, which is in the process of being bought by AT&T, reported fourth quarterly earnings and revenue that beat Wall Street’s expectations, helped by the success of blockbusters like the “Harry Potter” spinoff “Fantastic Beasts and Where To Find Them”. The corporate parent of Warner Bros., HBO and the Turner networks on Wednesday posted an adjusted earnings per-share of $1.25per share on revenue of $7.89 billion. Analysts estimates forecast an earnings per-share of $1.19 and overall revenues of $7.72 billion, according to a consensus estimate from Thomson Reuters. In the previous year, Time Warner earned 98 cents a share on revenue of $7.53 billion.
Time Warner, which is led by chairman and CEO Jeff Bewkes has agreed to be acquired by telecom giant AT&T which is a $85.4 billion deal.
“All our operating divisions increased revenue and profits while also making investments to capitalize on the growing demand for the very best video content and new ways to deliver it to audiences around the world.” – Jeff Bewkes, Chairman and CEO, Time Warner
Bewkes said the deal to be acquired by AT&T “will accelerate our efforts to spur innovation in the media industry and further strengthen our businesses.” He said the company remains on track to close the transaction this year.
During his campaign, President Donald Trump opposed the merger. A transition official told Reuters earlier this month that Trump still was against the deal.
With global box office blockbusters such as “Batman v. Superman: Dawn of Justice”, “Suicide Squad” and “Fantastic Beasts and Where to Find Them”, Time Warner had its best second-best year ever.
For the full year, Time Warner reported that revenues increased 7 percent to $11.4 billion in the Turner segment, helped by an increase in subscription revenues. “The increase in Subscription revenues was due to higher domestic rates and growth at Turner’s international networks”, the company said.
Free cash flow grew 22 percent to $4.4 billion, and cash provided from continuing operations grew 22 percent to $4.7 billion. EPS grew 23 percent to $5.86, versus $4.75 in 2015.
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