The media company posted $638 million net income for the period ended June 30, a 14 per cent rise over the comparable period the year before. Revenue rose 10 per cent to $7 billion.
The company said that film revenue rose 13 per cent to $2.8 billion during the period, led by video games such as “Mortal Kombat 9” and “Lego Pirates of the Caribbean: The Video Game.” Home entertainment revenue for “Harry Potter and the Deathly Hallows: Part 1” also contributed to the gain in a period marked by strong box office for the concluding instalment in the Harry Potter franchise and “The Hangover II.”
Time Warner also posted a 9 per cent gain in Turner Network and HBO revenue to $3.5 billion. Subscription revenue rose 7 per cent, or $127 million, and ad revenue climbed 11 per cent, or $112 million. Content revenue grew 18 per cent, or $40 million, in the period.
According to Evercore analyst Alan Gould, key focuses going forward will be how to maintain film earnings in a post-Harry Potter world and whether Time Warner will build or strike a deal for an on demand service similar to what CBS and NBC have struck with Netflix and Amazon. Time Warner holds the largest TV library with over 50,000 episodes
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