Time Warner Q2 Profit Increases; Reaffirms 2015 Adj. EPS View - Quick Facts

(RTTNews) - Time Warner Inc. (TWX) reported that its net income for its second quarter ended June 30, 2015 increased to $971 million from the prior year's $850 million, with earnings per share improving to $1.16 from $0.95 in the previous year.

Adjusted income per common share from continuing operations was $1.25, up 28% from $0.98 for the year-ago quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $1.03 per share for the quarter. Analysts' estimates typically exclude special items. The increase in adjusted earnings per share primarily reflects higher adjusted operating income and fewer shares outstanding.

Adjusted operating income grew 15% to $1.9 billion due to increases at Turner and Warner Bros., partially offset by a decline at Home Box Office. Operating Income increased 19% to $1.9 billion. Adjusted Operating Income and Operating Income margins were both 25% in the second quarter of 2015 compared to 24% and 23%, respectively, in the prior year quarter.

Revenues for the quarter increased to $7.35 billion from last year's $6.79 billion due to growth across all operating divisions. Wall Street analysts had a consensus revenue estimate of $6.90 billion for the quarter.

Time Warner announced that its Board declared a regular quarterly cash dividend of $0.35 per share of Common Stock, payable in cash on September 15, 2015 to shareholders of record on August 31, 2015.

The company continues to expect its 2015 full-year Adjusted Income per Common Share from Continuing Operations to be in the range of $4.60 to $4.70. Analysts expect annual earnings of $4.66 per share.