Time Warner reported a profit for the first quarter ended March 31, 2017 that increased about 17 percent from last year.
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It is reflecting higher Operating Income, lower interest expense, and a lower effective tax rate due in part to the Company's adoption of new guidance on accounting for tax benefits on equity-based compensation.
Both adjusted earnings per share and revenue for the quarter beat analysts' expectations.
Net income attributable to shareholders for the first-quarter of 2017 grew about 17 percent to $1.42 billion from the prior year's $1.21 billion, with earnings per share improving to $1.80 from $1.51 last year.
Income from continuing operations attributable to shareholders of $1.4 billion or $1.80 per share compared to $1.2 billion or $1.46 per share in the first quarter of 2016.
Adjusted income per share from continuing operations was $1.66, up 11% from $1.49 for the prior year quarter.
Operating income increased 4% to $2.1 billion and Adjusted Operating Income increased 7% to $2.2 billion due to growth at Home Box Office and Warner Bros. and lower corporate expenses, partially offset by a decrease at Turner and higher intersegment eliminations.
Revenues for the quarter grew about 6% to $7.74 billion from last year's $7.31 billion due to increases at all operating divisions, partially offset by higher intersegment eliminations. Wall Street analysts had a consensus revenue estimate of $7.67 billion for the quarter.
In Turner, quarterly revenues increased 6% to $3.1 billion, due to increases of 12% in Subscription revenues and 16% in Content and other revenues, partially offset by a decline of 2% in Advertising revenues.
In Home Box Office, revenues increased 4% to $1.6 billion, due to an increase of 5% in Subscription revenues, partially offset by a decline of 1% in Content and other revenues.
Warner Bros.'s revenues increased 8% to $3.4 billion, primarily due to higher television and theatrical revenues partially offset by lower videogames revenues.
Television revenues increased primarily due to higher domestic licensing revenues related to certain library series. ■