Time Warner Inc., HBO cable channel, CNN and TNT's owner, posted its profits for the second quarter that beat analysts' estimates. The earnings were boosted by higher revenues from advertising.
Time Warner's earnings per share were 83 cents compared with the 76 cents average that analysts predicted. Its network advertising sales climbed by 11% due to the playoffs of the National Basketball Association shown on TNT. It added that the NCAA's National Invitational Tournament also helped in gaining the increase in revenues. The stocks of Time Warner in New York trading closed at US$63.84 each. Its shares rose by 33% in 2013.
Moreover, the corporation boosted its full-year projections. Its net profit surged to US$771 million or 81 cents per share from U$413 million or 42 cents last year. Time Warner's revenue advanced by 10% to US$7.4 billion, beating the US$7.1 billion estimate.
The sales of Time Inc. slumped by 2.9% to US$833 million. Conversely, the sales of its Warner Bros division gained 13% to US$2.94 billion. Furthermore, the company increased its dividend by 11% during the first quarter to nearly 29 cents per share. Time Warner also reacquired US$1.8 billion in stock this year.
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