The results topped Wall Street estimates and the company
raised its full-year profit forecast. Time Warner shares rose 74 cents, or 2.3
percent, to $33.10 ahead of regular trading.
The company’s Time Inc. magazine unit and cable properties
both saw ad revenue improve for the second quarter in a row, a sign that
businesses are spending again to get customers’ attention.
And a film slate that included “Clash of the Titans” and
“Sex and the City 2” helped boost the company’s Warner Bros. studio.
Time Warner reported net income of $562 million, or 49 cents
per share, for the three months ended June 30. That’s up from $524 million, or
43 cents, a year ago.
Removing one-time items, earnings came to 50 cents per
share, while analysts expected 45 cents, according to Thomson Reuters.
Revenue climbed 8 percent to $6.38 billion, the biggest
increase in two years. Analysts expected revenue of $6.2 billion.
Revenue at Time Warner’s cable stations, which include HBO,
CNN and others, rose 11 percent, while the unit’s operating profit jumped 14
percent.
Film entertainment revenue climbed 8 percent, with a 21
percent jump in operating profit.
In publishing, which includes Time Inc. magazines such as
People and Sports Illustrated, revenue was flat and cost cutting helped lift
operating profit 50 percent.
With more than half the year behind it, Time Warner said it
expects its earnings per share will end the year up at least 20 percent from
2009. In May, the company had forecast growth on a percentage basis in the
mid-teens.
The new forecast suggests earnings of about $2.20 per share,
excluding any one-time charges or gains. That’s roughly in line with Wall
Street estimates.
