• by Wayne Friedman , November 4, 2015

Some alarm bells have been ringing among analysts over Turner Broadcasting's dip in subscription revenues for the third-quarter reporting period released by parent Time Warner.

Barton Crockett, media analyst at FBR & Co., is concerned that “Turner had a 1% decline in subscription revenues, attributed to [foreign exchange] and a decline in domestic subscribers.”

He added that this last part of the explanation from the company -- a decline in domestic subscribers -- is “a provocative statement in a sector beset with big gyrations in sentiment tied to cord-cutting fears that we see as overblown.”

Overall, Turner Broadcasting revenues sank 2% to $2.4 million -- which was slightly below analysts' estimates.

Analysts were a bit happier with Turner’s advertising revenues, which sank just 1.3% -- better than the 3% decline expected by FBR’s Crockett. Advertising revenues at CNN and Cartoon Network were flat, while declines -- attributed to lower ratings -- were seen at TBS and TNT.

HBO witnessed 5% higher revenue to $1.4 billion, and improved affiliate fees by 4%.

Time Warner’s Warner Bros. studio unit grew 15% to $3.2 billion -- higher than estimates -- as a result of big syndication revenue from “2 Broke Girls,” “Person of Interest” and “Gotham.” Video game revenue also rose, thanks to to “Batman: Arkham Knight.” But the studio had disappointing theatrical results from “Magic Mike XXL,” “Vacation” and “The Man from U.N.C.L.E.”

Overall, Time Warner revenue grew 5% to $6.6 billion, with net income 7% higher at $1.03 billion. After the company cut its profit forecast, Time Warner's stock sharply fell nearly 8% to $69.39 in mid-day trading.