Nov 5, 2014 9:48 AM
Time Warner boosts annual guidance
The Associated Press
NEW YORK (AP) Time Warner is raising its guidance for the full year due to the reversal of some tax reserves.
The media company, which owns TV channels like HBO and TBS as well as Warner Bros. studios, has been going through belt tightening since August, when Rupert Murdoch's 21st Century Fox abandoned an attempt to take over Time Warner and combine two of the world's biggest media companies.
It has recently announced job cuts across divisions, including about 1,000 jobs at its Warner Bros. Studios, which employs about 7,000; and 1,475 jobs, or about 10 percent of staff, at Turner Broadcasting, the parent of the CNN, TBS and TNT networks.
But Time Warner had rosier news on Wednesday. It now expects adjusted earnings for 2014 to grow in the high teens percentage rate from 2013 earnings of $3.51. That is up from prior expectations of a low-teens percentage growth rate.
The company says that reflects a net benefit about 15 cents per share from the reversal of tax reserves, offset in part by programming, restructuring and severance charges in the third and fourth quarters.
Meanwhile, New York-based Time Warner said that its net income fell 18 percent to $967 million, or $1.1 1 per share, in the third quarter. Adjusted results were $1.22 per share, beating analyst expectations of 94 cents per share, according to Zacks Investment Research. Revenue rose 3 percent to $6.24 billion, beating expectations of $6.13 billion.
The company said both Turner and HBO had double-digit increases in subscription revenues, boosted by consumer demand for their programming including shows like HBO's "True Detective."
Shares rose $2.20, or 2.9 percent, to $77.17 in morning trading Wednesday. Its shares have risen almost 18 percent over the past year.