Media conglomerate Time Warner reported a decrease in revenue and earnings for the second quarter. Despite improved results at its television networks unit, company reported a 10.8% decrease in adjusted income to $576 million, or $0.59 a share. The results beat earnings forecasts of $0.58 a share. If special items are included, such as the charges the company incurred shuttering some operations in Turkey and India, net income dropped even more sharply, decreasing 32.6%, while revenue fell 4.1% to $6.7 billion.
The company posted revenue and operating income gains in its networks unit. The networks unit is its largest division and includes HBO and Turner Broadcasting. TBS viewership increased 37%, helped by the popularity of “The Big Bang Theory,” which was the most popular sitcom on cable over a year ago. Strong ratings for NBA games and the success of some new shows on TNT, such as “Dallas’ and “Perception,” offset declines at the company’s domestic news networks, which includes CNN.
Results in the publishing division continued to lag as both advertising and subscription revenue fell. This cut profits in the division nearly in half. The publishing division is centered around magazine publisher Time Inc.
Results were not good at the film and TV entertainment unit either. Both revenue and income declined due to the lack of a major box office hit in the quarter. The year-ago quarter included several big hits, including “The Hangover, Part 2.”
“The Dark Knight Rises,” the studio’s big film debut of 2012, did not open until the third quarter. According to tracking service Box Office Mojo, the Warner Bros.’ movie earned $543 million worldwide in the first 11 days after it hit theaters on July 20. Its opening weekend domestic box office of $160.9 million was slightly lower than some analysts’ forecasts.
The company reaffirmed its forecast for full-year earnings despite the decrease in earnings and revenue. The company is forecasting that adjusted income will post a “low double digit” percentage rise. Analysts are forecasting an 11% increase in earnings.