Time Warner reported higher third-quarter revenue, driven by strength in its networks segment, but net income fell as the company bought back some of its debt.
Net income totaled $522 million, or 46 cents per share, down from $662 million, or 55 cents per common share. Adjusted operating income rose 5% to $1.4 billion, exceeding Wall Street expectations.
Revenues rose 2% to $6.4 billion.
"Our strategy of focusing on high-quality branded content continues to pay off. Our networks businesses delivered robust growth in advertising and subscription revenues in the quarter," said Jeff Bewkes, chairman and CEO of Time Warner. "In television, Turner, HBO and Warner Bros. all debuted new hit shows, like Rizzoli & Isles, Boardwalk Empire and Mike & Molly."
At Time Warner's networks group, which includes Turner and HBO, operating income rose 23% to $1.14 billion from $924 million as revenues rose 9% to $3 billion from $2.76 billion. Ad revenues rose10% and subscription revenues grew 9%. Programming costs increased 5% due largely to higher original programming expenses, the company said.
Time Warner also boosted its outlook for the full year, saying it expected the rate of increase in its adjusted income to be in the high 20% range. Previously it expected growth of at least 20%.
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