Time Warner: Streaming Revenue in Third-Quarter
In a pre-market release, Time Warner Inc. (NYSE: TWX) broadcast its third-quarter earnings on November 6. Adjusted diluted earnings per share were $1.69, a 20 percent increase for third-quarter 2012. The operating income for Time Warner totaled $1.2 billion, a 6 percent gain. Year-over-year OIBDA growth was 3 percent, representing $2 billion.
Year-over-year, revenue increased by 2.9 percent to $5.5 billion. Residential revenue contributed with an increase of 0.7 percent, or $4.6 billion; and business revenue for the fourteenth consecutive quarter grew by more than 20 percent. Revenue from that sector was $594 million, a 20.5 percent upswing.
High-speed data costs, and more money earned per customer, were cited as reasons that residential revenue grew. A total of 719,000 high-speed data subscribers were added; twice as many as the previous year. Data and voice subscription drove business revenues up.
The disputes and blackouts involving CBS and Journal Communications affected Time Warner’s third-quarter as well. The company spent 6.7 percent, $176 million, more on marketing, issued $15 million in customer credits, and described the activity of subscribers as “negatively impacted.”
To make comparisons with third-quarter 2012, the company removed any “investment-related gains” from SpectrumCo and Clearwire in its calculations for adjusted diluted earnings per share. Time Warner said it will be acquiring fiber-optic cable company DukeNet, probably in the first quarter of 2014. DukeNet will mainly serve the Carolinas region.
Time Warner continued its share repurchasing program, buying back 4.8 million common stock shares in the third-quarter. Since its inception, Time Warner has bought back close to 86 million shares. Early morning trading saw share prices as high as $69.60 per share.