Time
Warner’s Turner Broadcasting advertising revenues slipped 2% during the company’s third-quarter reporting period.
Most of that loss came from international advertising business. U.S.
advertising sales of Turner networks were essentially flat, according to the company.
Turner revenues improved 5% to $2.44 billion -- mostly as a result of 10% gains ($110 million) in
subscription revenues. Content revenues climbed 17% or $12 million. Operating income fell 65% to $337 million, partly due to $482 million in programming charges because of Turner’s decision not
to air “certain programming.” Analysts say this is largely the result of the decision not to run "The Mentalist" reruns.
HBO also gained in revenues, in part because of
subscription revenues -- up 10% to $1.3 billion. Subscription revenues climbed 10% and content revenues (home video sales) were up 7%. HBO’s operating income fell 24% to $380 million.
Warner Bros. revenues were up 3% to $2.8 billion, due to higher subscription video-on-demand (SVOD) sales of TV programming. In addition, there were higher revenues from licensing products and
improved sales from TV production.
Overall, TW's revenues gained 3% to $6.2 billionm with net income dropping 18% to $967 million.
Time Warner beat analysts profit and revenues
estimates; its stock was up 2% in mid-day trading to $76.43.