Time Warner beats by $0.22, beats on revs; reaffirms FY15 EPS guidance (87.65)
- Reports Q2 (Jun) earnings of $1.25 per share, excluding non-recurring items, $0.22 better than the Capital IQ Consensus Estimate of $1.03; revenues rose 8.2% year/year to $7.35 bln vs the $6.9 bln consensus, due to growth across all operating divisions. 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.
- Co reaffirms guidance for FY15, sees EPS of $4.60-4.70, excluding non-recurring items, vs. $4.66 Capital IQ Consensus.
- HOME BOX OFFICE Revenues increased 1% ($21 million) to $1.4 billion, due to an increase of 4% ($40 million) in Subscription revenues, partially offset by a decline of 7% ($19 million) in Content and other revenues. Subscription revenues grew due to higher domestic rates, partially offset by lower international revenue, which included the impact of the transfer to Turner of the operation of HBO's basic cable network in India. The decrease in Content and other revenues reflected lower home entertainment revenues.
- TURNER Revenues increased 3% ($77 million) to $2.8 billion, benefiting from growth of 48% ($69 million) in Content and other revenues and 2% ($20 million) in Subscription revenues, partially offset by a decline of 1% ($12 million) in Advertising revenues.