Time Warner reports 10% revenue increase

Time Warner, the owner of Warner Brothers, Turner Broadcasting and Time, last week reported a 10% rise in revenue for the quarter that ended in June, its highest growth rate since 2007, and slightly revised upward its earnings guidance for the year, reports The New York Times.

Warner Brothers' movies like 'The Hangover Part II' did well at the box office, helping its film unit increase revenues by 13% in the second quarter.

The company's total revenues were $7.03 billion, up from $6.38 billion in the same quarter last year. That beat most analysts' expectations, as did its net income of $638 million, or 59 cents a share, up from $562 million, or 49 cents a share.

Chairman and CEO Jeff Bewkes said the company posted its highest revenue growth since 2007, according to the Online Wall Street Journal.

“Continued investment in our content and brands is paying off,” he said.

The Broadcasting Cable reports that John Martin, Time Warner's chief financial and administrative officer, said the year has progressed more or less as planned.

“The first quarter was our most challenging one from a profit growth perspective due to difficult film comparisons and the significant investments we made in the NCAA basketball tournament. In the second quarter, we returned to profit growth and adjusted EPS growth,” he said.

Martin said the company expects accelerating growth in profit and earnings per share beginning in the third quarter. “In fact, growth would be even higher if not for the timing of programming and marketing spending in the third quarter at the networks,” he said.

Time Warner expects programming spending to grow at a mid-teen rate during the quarter. Ad revenues are expected to grow at the same rates as in the second quarter.