Time Warner TV subs revenue rise

Time Warner has reported growth in subscription revenues at its Turner and HBO networks, but gains in the second quarter were dented by declines in ad revenues, mainly at Turner’s international channels.

Overall, Time Warner today said profits from its continuing operations plunged 34% in the three months ending June 30, down to US$519m from US$792m a year earlier. Revenue fell 9% to US$6.8bn.

The company, which counts Warner Bros, Turner and HBO among its portfolio, is in the midst of a restructuring that will see it spin-off its AOL web portal by the end of the year.

AOL continued to prove a drag on its parent, with revenues at the unit down 24% to US$804m in the past quarter. The Time Inc publishing arm was also down on the squeeze in advertising.

Warner Bros, meanwhile, revealed revenues down 9% to US$2.3bn with a strong theatrical performance offset by a drop in DVD sales.

In TV, Time Warner said revenues rose 5% to US$3bn, driven by 8% growth in subscription revenues, primarily from higher rates at Turner and HBO, plus the impact of consolidating the HBO Latin America Group.

The gains were partially offset however by a 3% drop in ad revenues, amounting to a US$30m slump, attributed to weakened demand mainly at Turner’s international networks and the unfavorable impact of foreign exchange rates.

Adjusted operating income before depreciation and amortization at the division was up 14% to US$981m, driven by HBO Lat Am.

Programming costs increased 4% due to the impact of consolidating HBO Lat Am and higher original programming expenses at Turner, though these were themselves partly offset by lower expenses related to sports programming, primarily NBA basketball.