Time Warner reported a 3% higher quarterly revenue to $6.79 billion, with net income 10% higher to $850 million.
The gains were largely the result of increases from premium TV service HBO, which witnessed a 17% revenue gain to $1.4 billion. Breaking this down, HBO subscription revenue rose 10% (or $101 million) and content revenue soared 56% ($98 million), with licensing of HBO content to Amazon Prime as a big driver.
Turner networks inched up by 5% to $2.75 billion, with 8% growth ($99 million) coming from subscription revenues and a 1% hike ($13 million) in advertising revenues.
Advertising in the period benefited from two 2014 NCAA Division I Men’s Basketball Championship tournament semifinal games and higher pricing. Some of this was offset by lower audience delivery and demand.
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In terms of the current scatter period, Time Warner executives say scatter pricing is up in the third quarter, but not higher volume -- in general, what has existed through most of the current TV season for many networks. Company executives expect third-quarter volume will be “flat to down in the single digits [percentages].”
Warner Bros. witnessed revenues sinking 2% ($71 million) to $2.9 billion due to tougher comparisons to a year ago when the studio’s theatrical slate included “Man of Steel,” “The Hangover Part III” and “The Great Gatsby.”
Time Warner stock was down 12%, from $74.89 in midday Wednesday trading.