SEC Filings

8-K
TIME WARNER INC. filed this Form 8-K on 08/02/2017
Entire Document
 
EX-99.1

Exhibit 99.1

TIME WARNER INC. REPORTS SECOND-QUARTER 2017 RESULTS

Second-Quarter Highlights

 

    Revenues increased 5% to $7.3 billion

 

    Turner and Home Box Office grew Subscription revenues 13% and 8%, respectively

 

    Operating Income and Adjusted Operating Income totaled $1.7 billion and $1.8 billion, respectively

 

    EPS grew 12% to $1.34 and Adjusted EPS grew 3% to $1.33

 

    Cash Provided by Operations from Continuing Operations and Free Cash Flow totaled $2.5 billion and $2.3 billion, respectively, in the first half of 2017, up 25% and 22%, respectively

NEW YORK, August 2, 2017 – Time Warner Inc. (NYSE:TWX) today reported financial results for its second quarter ended June 30, 2017.

Chairman and Chief Executive Officer Jeff Bewkes said: “We’re very pleased with our first-half results, which keep us on track to achieve our objectives for the year. Our performance is a result of the continued successful execution of our strategic objectives – with the strong Subscription revenue growth at Home Box Office and Turner a great example of this – along with the investments we’re making in our brands and high-quality video content. Warner Bros. is home to the biggest cinematic hit of the summer so far with Wonder Woman, which has grossed approximately $800 million at the global box office to date, and dazzled audiences again last month with the critically acclaimed Dunkirk. Heading into the 2017-2018 television season, Warner Bros. is the leading supplier of primetime series to the broadcast networks for the ninth straight season. In ad-supported cable, Turner was once again home to three of the top five networks among adults 18-49 in primetime, with TNT and TBS leading the way in the #1 and #2 spots. CNN also continued to distinguish itself, posting its most-watched second quarter ever. And last month, Game of Thrones returned to HBO, with the most-watched season premiere episode ever on HBO.”

Mr. Bewkes continued: “The creative excellence across the company was also on display as Time Warner garnered more than 150 Primetime Emmy nominations. HBO once again received more nominations than any other network, and HBO’s Westworld, which is produced by Warner Bros., received the most nominations of any show. These results and accolades reflect strong execution and the investments we’ve been making, both in the best content and in ensuring that we deliver our content across platforms to offer engaging experiences for our audiences. Accelerating our pace of innovation and being able to connect more directly with consumers are among the exciting reasons for our proposed merger with AT&T, which remains on track to close before year end, pending regulatory review and consents.”

Company Results

Revenues grew 5% to $7.3 billion due to increases at all operating divisions, partially offset by higher intersegment eliminations. Operating Income decreased 8% to $1.7 billion due to declines at Warner Bros. and Turner and higher corporate expenses, partially offset by an increase at Home Box Office. Adjusted Operating Income was essentially flat at $1.8 billion with growth at Home Box Office and Warner Bros. offset primarily by a decline at Turner.