Time Warner Inc. stock was down as much as 10.4% ($8.03 per share) to $69.27 each in early trading Wednesday after the media giant lowered earnings guidance and said it was considering curbing subscription video on demand windows, triggering a similar fall-off in other stocks in the sector.
Time Warner stock ralled later in the day to close at $72.20 each, down 6.6% or $5.50 per share.
AMC Networks fell the hardest, down 6.8% ($5.24 each) to $71.76 per share, followed by Viacom, closing at $47.92 each, down 6.6% ($3.37 per share). Viacom was followed by Scripps Networks INteractive down 2.7% ($1.67 each); Starz, down 2.6% (90 cents each); Discovery Communications, down 2.5% (78 cents each); and Disney, down 2% ($2.29 each).
Time Warner lowered its 2015 earnings per share guidance from $6 per share to $5.25 per share, citing the impact of a stronger dollar and subscriber declines. While Time Warner did not specifically identify the amount of the declines, it said that subscription revenue was down by about 1% in the quarter.
Weekly digest of streaming and OTT industry news
Thank you for signing up to Multichannel News. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.