• by Wayne Friedman , February 11, 2015

Time Warner’s Turner revenue grew slightly in the fourth quarter -- with subscription revenue gaining and advertising down a bit during the period.

Revenue grew 2% to $2.6 billion, with subscription revenues up 5% ($66 million) and advertising off 1% ($12 million) during the period.

Advertising revenues decreased due to ratings declines at Turner's domestic entertainment networks, as well as having fewer Major League Baseball playoff games.

Media analyst Michael Nathanson of MoffettNathanson Research wrote in a report: “Surprisingly, domestic advertising was not as negatively impacted as we thought by weak fourth-quarter ratings.”

Higher subscription revenues resulted from increasing domestic rates and international growth, partially offset by lower domestic subscribers.

HBO added 6% in revenues to $1.3 billion -- with subscription revenues 5$ higher ($55 million), as well as an increase of 14% ($23 million) in content and other revenues.

Revenues at the Warner Bros. studio headed in the other direction -- down 5% to $3.8 billion, due to lower home entertainment and video-games revenues. Theatrical revenue was up against a strong fourth-quarter 2013 when Warner Bros. bigger revenue releases: “Man of Steel,” “Pacific Rim” and “The Hangover Part III."

Overall, the analyst says Time Warner financial results came in just about as expected, with revenues down 1% to $7.5 billion and net income down 27% to $718 million from $983 million. Time Warner’s midday stock price was up 0.5% to $81.32.

The Turner business grew operating income 5% to $921 million, with HBO and Warner Bros. dipping in operating income -- down 5% to $394 million and off 32% to $391 million, respectively.