Time Warner said revenue grew by about 5 percent during the first quarter, but increased spending on HBO Now and original programming weighed on profit. Shartia Brantley reports.
Strong sales but a drop in profit for Time Warner. The cable giant said revenue grew by about 5 percent during the first quarter helped by the NCAA Division 1 men's basketball tournament and growth in Turner's news businesses. CEO Jeff Bewkes said: "The NCAA Men's Basketball Tournament was a huge multiplatform success, with its highest average television viewership in over two decades helping make TBS the #1 ad-supported cable network in primetime among adults 18-49 in the quarter." But profited declined from a year-ago in part due to higher marketing costs associated with the launch of HBO Now. That's the streaming version of HBO offered for a monthly subscription.. customers don't need to have cable tv. However.. profit still exceeded analysts' expectations. Shares rose initially about 2 percent in premarket then turned negative before the market open.