NEW YORK (TheStreet) -- Time Warner's (TWX) 2016 third quarter results were positive amidst the election cycle, and the media company has measures in place to keep up the encouraging ratings on CNN after the election news dies down, Bloomberg News' Gerry Smith said on "Bloomberg Markets: Americas" on Wednesday afternoon.
Before today's opening bell, Time Warner reported adjusted earnings of $1.83 per share, topping estimates of $1.37 per share. Revenue rose by 9% year-over-year to $7.17 billion, higher than estimates of $6.98 billion.
The financial report was good for Time Warner as the "U.S. presidential election continues to fuel viewership and advertising in its cable news network," noted BloombergTV's David Gura.
"CNN has certainly been doing really well this year with the presidential election so the ratings have been very high," Smith said in response.
"How does CNN continue to capitalize on that or continue to keep an audience after November 8?" Gura asked. The U.S. presidential election is next Tuesday, November 8.
That's an important question to consider because when you look at past election cycles, CNN, Fox News and MSNBC have seen "big rating spikes" that are hard to maintain in the post-election period, Smith noted. However, CNN has been investing more in its digital presence, as well as in original content, such as the travel and culture show "Anthony Bourdain: Parts Unknown."
"The strategy there is to sort of minimize the ups and downs in the ratings, which depend a lot on what news is popping at the moment" he explained. "It's going to be difficult for them to maintain that momentum but they certainly have some strategies in place."