SEC Filings

8-K
TIME WARNER INC. filed this Form 8-K on 10/26/2017
Entire Document
 
EX-99.1

Exhibit 99.1

TIME WARNER INC. REPORTS THIRD-QUARTER 2017 RESULTS

Third-Quarter Highlights

 

    Revenues increased 6% to $7.6 billion

 

    Home Box Office grew Subscription revenues 12%, its highest quarterly growth in 13 years

 

    Operating Income grew 11% to $2.2 billion and Adjusted Operating Income grew 13% to $2.3 billion

 

    Warner Bros. posted record third-quarter Operating Income and Adjusted Operating Income

 

    EPS of $1.73 and Adjusted EPS of $1.82

 

    Cash Provided by Operations from Continuing Operations and Free Cash Flow totaled $4.0 billion and $3.6 billion, respectively, through the third quarter, up 12% and 8%, respectively

NEW YORK, October 26, 2017 – Time Warner Inc. (NYSE:TWX) today reported financial results for its third quarter ended September 30, 2017.

Chairman and Chief Executive Officer Jeff Bewkes said: “We delivered very strong third-quarter results, keeping us on track to achieve our objectives for 2017. Both Turner and Home Box Office achieved double-digit gains in Subscription revenues, including HBO’s highest quarterly growth in 13 years, while Warner Bros. had a terrific quarter in theatrical, which all contributed to us increasing Operating Income by 11% and Adjusted Operating Income by 13%. Warner Bros.’ latest blockbuster, It, followed other box office successes, including Annabelle: Creation, Dunkirk and Wonder Woman, which have earned Warner Bros. the #1 spot at the domestic box office so far this year. Turner boasted the #1 comedy across all television among adults 18-34 with Adult Swim’s Rick and Morty and TNT’s NBA Opening Night doubleheader averaged 4.9 million total viewers, up 53% compared to last year. CNN also maintained its strength as the #1 news network among adults 18-49 in both primetime and total day, and had its most-watched third quarter ever among total viewers.”

Mr. Bewkes continued: “Home Box Office’s creative excellence was again recognized at the Primetime Emmy Awards where HBO received more Primetime Emmys than any other network for the 16th consecutive year. The seventh season of Game of Thrones concluded during the quarter with an average of 33 million viewers, a record for an HBO original series. Our results and these highlights reflect our continued focus on executing our strategy, which includes both creating the most engaging content and advancing the ways that consumers can enjoy and experience our content and brands across platforms. The ability to accelerate our pace of innovation and connect more directly with consumers are among the reasons we are excited about our proposed merger with AT&T, which remains on track to close before year end, pending regulatory review and consents.”

Company Results

Revenues grew 6% to $7.6 billion due to increases at all operating divisions. Operating Income increased 11% to $2.2 billion and Adjusted Operating Income increased 13% to $2.3 billion due to increases at all operating divisions.

The Company posted Diluted Income per Common Share from Continuing Operations (“EPS”) of $1.73, compared to $1.87 for the prior year quarter. Adjusted Diluted Income per Common Share from Continuing Operations