This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Time Warner Living the Great Days of Television: Media Roundup

his story has been updated with additional information on Time Warner's revenue, the competitive landscape and the company's share price.

NEW YORK( TheStreet) -- Time Warner  (TWX - Get Report) gets nearly three-quarters of its operating profit from television, and as television advertising revenue grows along with increased fees from cable-TV operators, CEO Jeffrey Bewkes is proving that the television business is the place to be in the media industry.

Time Warner shares, which has gained 42% this year, slipped 0.8% to $67.69 as the New York-based owner of HBO and TBS posted third-quarter profit that beat analysts' expectations.

Net income from continuing operations excluding some item totaled $1.2 billion, or $1.01 cents a share, compared to $822 million, or 84 cents a share, a year ago. Analysts were expecting net income of $837.05 million, or 89 cents a share for the third quarter, according to a Bloomberg survey. Revenue trailed estimates as Time Warner reported a 0.2% increase in sales to $6.86 billion. Analysts were expecting $6.94 billion.

CBS  (CBS - Get Report) was falling in after-market trading after the most-watch U.S. television network posted profits for the third quarter that met analyst expectations. Income from continuing operations totaled $469 million, or 76 cents a share, even with the average forecast of 25 analysts surveyed by Bloomberg. Revenue grew 11% in the quarter to $3.63 billion, outpacing the average forecast of $3.53 billion. Shares were falling 1.8% to $58.55 at 4:45pm New York time.

Cable-TV companies are increasing the fees they pay to content producers such as Time Warner, reflecting the popularity of shows such as "Behind the Candleabara," "Boardwalk Empire" and "Game of Thrones."

The jump in Time Warner's profit was fueled by a 5% increase in revenue from Time Warner's television networks boosted by an 11% gain in advertising. Even CNN, historically a laggard, has begun to show signs of a rebound. the 24-hour news network posted a 15% increase total day ratings among 25 to 54 year-old. HBO's results were boosted by Time Warner's acquisition of partner's interests in HBO Asia and HBO South Asia (collectively, "HBO Asia") in September 2013. As a result, Time Warner took full ownership of HBO Asia, a development to be reflected in the company's fourth-quarter results.

Adjusted operating income increased 8% to $1.7 billion.


CEO Jeffrey Bewkes has won investor support for his successful moves spinning off  Time Warner Cable (TWC) and  AOL (AOL) with  Time Inc.scheduled for the second quarter of 2014. The spin-offs have allowed Bewkes to focus on the company's television and movie businesses.

Investors have also benefited from Bewkes decision to use free cash flow to repurchase the company's shares -- 31% of shares outstanding over the past five years.

By Leon Lazaroff in New York

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CBS $55.52 0.00%
TWX $88.49 0.00%
AAPL $126.44 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs