Time Warner Rebounds With Summer Blockbusters

Company's movie business had been moribund

Time Warner’s movie business has bounced back. After reporting a huge revenue drop in its theatrical products last quarter—down by 20 percent—the company announced on Wednesday that it saw a 13 percent spike in filmed entertainment revenue during the second quarter, totaling $2.8 billion.

Summer movies saved the day for Warner Bros. Despite the lackluster performance of Green Lantern, Harry Potter and the Deathly Hallows: Part 2 shattered records, grossing more than $1 billion worldwide by the end of July. The Hangover Part II also contributed to Time Warner’s film rebound, bringing in more than $563 million globally.

On the network side at Turner Broadcasting and HBO, the company saw a 9 percent revenue increase, up to $3.5 billion, with an 11 percent increase in advertising revenue. The Time Warner brass thanked the high sales of HBO’s True Blood and Game of Thrones for an uptick in content revenues. On a conference call with analysts, CEO Jeff Bewkes talked up the company’s TV Everywhere initiative, pointing out that the HBO Go mobile app has been downloaded almost 4 million times, “making us agnostic to whether viewers watch our shows on TVs, PCs, or mobile devices.”

Time Warner even reported growth in its publishing business. Revenues were up 3 percent to $946 million, though advertising revenues only increased by 1 percent. 

The company’s total revenue rose 10 percent in the quarter to $7 billion–the highest growth rate for Time Warner in four years. The company’s shareholders can feel good as well. Adjusted earnings per share were up by 20 percent, to $0.60.