SEC Filings

10-Q
TIME WARNER INC. filed this Form 10-Q on 08/02/2017
Entire Document
 


Table of Contents

TIME WARNER INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)

 

The Warner Bros. segment had the following number of theatrical film, theatrical product home video and electronic delivery and videogame releases during the three and six months ended June 30, 2017 and 2016:

 

                                                                                                                           
     Three Months Ended June 30,      Six Months Ended June 30,  
             2017                      2016                      2017                      2016          

Theatrical film releases

                   10          

Theatrical product home video and electronic delivery
releases

                           

Videogame releases

                           

Theatrical product revenue from film rentals increased for the three months ended June 30, 2017, primarily reflecting higher revenues of $180 million from theatrical films released during the second quarter of 2017 compared to the second quarter of 2016, partially offset by lower carryover revenues of $78 million from prior period releases. Theatrical product revenue from film rentals increased for the six months ended June 30, 2017, primarily reflecting higher revenues from theatrical films released during the first half of 2017 compared to the first half of 2016.

For the three and six months ended June 30, 2017, theatrical product revenues from home video and electronic delivery increased due to higher revenues of $74 million and $135 million, respectively, from releases during the second quarter and first half of 2017, respectively, compared to the second quarter of 2016 and the first half of 2016, respectively, and higher revenues of $48 million and $34 million, respectively, from prior period releases, including catalog titles, during the second quarter and first half of 2017, respectively, compared to the second quarter of 2016 and the first half of 2016, respectively.

The increase in theatrical product revenues from television licensing for the three and six months ended June 30, 2017 was primarily due to the timing and mix of availabilities.

The decrease in television product revenues from television licensing for the three months ended June 30, 2017 was primarily due to lower initial telecast revenues, partially offset by the favorable impact of the timing and mix of availabilities. The increase in television product revenues from television licensing for the six months ended June 30, 2017 was primarily due to higher domestic licensing revenues related to library series, partially offset by lower initial telecast revenues.

Videogames revenues increased for the three months ended June 30, 2017 primarily due to higher revenues of $45 million from releases during the second quarter of 2017 compared to the second quarter of 2016 and higher carryover revenues of $24 million from prior period releases. Videogames revenues decreased for the six months ended June 30, 2017 primarily due to lower carryover revenues of $49 million from prior period releases and lower revenues of $11 million from releases during the first half of 2017 compared to the first half of 2016. In addition, other revenues for the three and six months ended June 30, 2017 increased $49 million and $41 million, respectively, primarily related to higher revenues from digital initiatives.

The components of Costs of revenues for the Warner Bros. segment are as follows (millions):

 

                                                                                                                                                                                         
     Three Months Ended June 30,   Six Months Ended June 30,
     2017      2016           % Change        2017      2016           % Change     

Film and television
production costs

   $ 1,486       $ 1,253       19%   $ 3,153       $ 2,780       13%

Print and advertising
costs

     505         467       8%     997         861       16%

Other costs, including
merchandise and
related costs

     198         196       1%     370         431       (14)%
  

 

 

    

 

 

      

 

 

    

 

 

    

Costs of revenues (a)

   $         2,189       $         1,916       14%   $         4,520       $         4,072       11%
  

 

 

    

 

 

      

 

 

    

 

 

    

 

(a)

Costs of revenues excludes depreciation.

 

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