Time Warner’s Q3 Recap
Shares of media giant Time Warner Inc (NYSE:TWX) traded to the upside on Wednesday morning following the company’s third quarter results in the pre-market session. Through its array of brands including HBO, TBS, and CNN the company was able to raise its advertising revenue and cable system fees at its TV networks. As of September 2012, HBO’s programming reaches approximately 30 million pay television subscribers in the United States, making it the second largest premium channel in the United States. In addition to its U.S. subscriber base, HBO also broadcasts in at least 151 countries covering approximately 114 million subscribers worldwide. The advancement overcame a decline in revenue and profit at the company’s studio unit, which includes Warner Bros. Time Warner reported a 15% jump in income from continuing operations to $944 million, better than expected alongside flat revenue.
Time Warner is working to spin off its Time Inc. magazine unit. The results from this business segment have lagged the company’s other mainstream segments. Time’s revenue and profit declined, however, the results were not included in the company’s operating results. Management would go on to reiterated its full-year earnings per share guidance. Time Warner should post a mid-teen percentage increase after excluding the results from Time Inc.
Shares of the company were higher by $0.50 to $68.50 at the time of this writing. Shares of the company have risen by a whopping 43 percent year to date. Unbelievable gains according to many seeing as the broad market averages haven’t even done half as well. In the coming days it seems likely we will see a number of analyst comment on the quarter. Keep your ears peeled for guidance into the company’s advertising revenue. This segment has proven a strong indicator for full year results as well as quarterly strength. Investors may considering cashing in some of their unbelievable gains on this most recent strength.
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