Revenues rose across the board at Time Warner, and its earnings easily beat expectations. Fred Katayama reports.
The picture is beginning to look a bit brighter at the producer of the "Game of Thrones," Time Warner. Although restructuring, severance and programming charges caused the media giant's profit to fall, its earnings handily beat expectations. Revenues rose across the board, helped by fatter subscription sales, especially at its Turner cable networks and paid-TV programmer, HBO. The higher domestic subscription rates at Turner helped offset a decline in its ad revenue. Turner is cutting 10 percent of its staff. Time Warner has been chopping its payrolls ever since it rejected 21st Century Fox's takeover bid in the summer. Its Warner Brothers film and TV studios just said Tuesday it'll cut about 13 percent of its global staff. HBO delivered the fastest revenue growth among the divisions, thanks to that rise in subscriptions. But it'll soon launch a standalone streaming service that doesn't require a subscription to take on the likes of Netflix and Amazon. Time Warner surprised some analysts with its bullish forecast. It now sees full-year earnings percentage growth in the high teens instead of the low teens. Its shares, which have outperformed most of its peers this year, rose sharply in early trading.