Time Warner earnings benefit from tax reform
On a GAAP basis, Time Warner earnings rose to $1.75 per share from 40 cents per share in Q4 2016. The Time Warner earnings results for Q4 2017 include a benefit of $1.06 per share in connection with the tax reform bill. Time Warner management said the strong earnings results were driven by strength in all three reporting segments.
“Warner Bros. had its best year ever at the global box office with its films grossing over $5 billion in box office receipts, led by hits like Wonder Woman, It and Dunkirk, which received eight Academy Award nominations, including for Best Picture,” Chairman and CEO Jeff Bewkes said in a statement on Time Warner earnings. “Warner Bros. also remains the #1 supplier of television shows for the broadcast networks, and saw continued growth in games with franchise releases Middle-earth: Shadow of War and Injustice 2.”
Time Warner records growth across segments
Home Box Office revenues rose to $1.7 billion from $1.5 billion a year ago, driven by higher Subscription revenues, although a decline in Content and other revenues partially offset that. Consensus for the segment was at $1.65 billion. Turner revenue rose to $3.1 billion from $2.8 billion a year ago, driven by higher Subscription, Content and other, and Ad revenues. Analysts had been looking for $3 billion from the segment.
Warner Bros. revenue rose to $4.1 billion from $3.9 billion in the year-ago quarter, driven by growth in games revenues, although lower theatrical revenues partially offset that growth. Consensus was at $4.03 billion for the segment.
Following the Time Warner earnings release, the company’s stock jumped by more than 1% to as high as $96.50 in premarket trades this morning.