While Turner witnessed higher advertising gains for its CNN and Cartoon Networks, there were declines for its bigger TNT and TBS channels. Industry analysts predicted anywhere from a 0.5% to 1% increase in advertising revenues for the Time Warner TV unit.
Turner also had higher advertising revenue from the 2015 NCAA Division I Men's Basketball Championship tournament, and its revenues rose due to the licensing of Turner original programming to Hulu.
Overall, Turner networks’ revenues climbed 3% ($77 million) to $2.8 billion, with distribution fees 2% higher -- a gain of $20 million. Advertising revenue sank $12 million.
HBO revenues added 1% (up $21 million) to get to $1.4 billion with distribution revenues up 4% (a gain of $40 million). Media analysts were expecting a 4% decline.
Big gains were made for Time Warner’s Warner Bros. filmed entertainment -- gaining 15% (up $428 million) to $3.3 billion -- due to new TV syndication deals for “The Big Bang Theory,” sales from video games “Batman: Arkham Knight” and “Mortal Kombat”; and a “Seinfeld” deal on Hulu.
But some Warner Bros. theatrical films underperformed, including “Entourage” and ‘Hot Pursuit.”
Total Time Warner revenue grew 8.2% to $7.4 billion with net income 19.3% higher to $1.05 billion in the second quarter. Stock market results on Wednesday were 6.6% lower to $81.80.