Time Warner Q4 Results Beat Estimates

(RTTNews) - Time Warner Inc. (TWX), which has agreed to be acquired by AT&T Inc. (T), on Wednesday reported a 66 percent fall in profit for the fourth quarter from last year, as higher revenues were more than offset by premiums paid and costs incurred in connection with debt repurchases. However, both revenue and adjusted earnings per share for the quarter beat analysts' estimates.

Fourth-quarter net income attributable to shareholders fell to $293 million or $0.37 per share from $857 million or $1.06 per share in the prior-year quarter. The latest quarter's results include $1.0 billion of premiums paid and costs incurred in connection with debt repurchases.

Adjusted earnings for the quarter were $1.25 per share, compared to $1.06 per share in the prior-year period.

On average, thirty two analysts polled by Thomson Reuters expected the company to report earnings of $1.19 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 11 percent to $7.89 billion from $7.08 billion last year. Wall Street expected revenues of $7.72 billion for the quarter.

The increase in revenue reflects increases at all operating divisions and includes the unfavorable impact of foreign exchange rates of approximately $110 million in the quarter.

Turner revenues increased 7 percent to $2.84 billion, due to increases of 14 percent in subscription revenues and 9 percent in content and other revenues, partially offset by a decrease of 2% in advertising revenues.

Home Box Office revenues increased 6 percent to $1.49 billion, due to an increase of 5 percent in subscription revenues and 7 percent in content and other revenues.

Warner Bros. revenues rose 17 percent to $3.87 billion, primarily due to higher theatrical revenues, which benefited from the releases of "Fantastic Beasts and Where to Find Them" and "The Accountant", in addition to higher television revenues, primarily due to higher licensing revenues and increased production.

On February 7, 2017, the company's board of directors approved a regular quarterly dividend of $0.4025 per share.