Time Warner Beats Q1 Earnings Expectations Thanks To Success Of 'LEGO Batman'

Time Warner Inc. on Wednesday reported earnings for the first quarter that were above Wall Street expectations. Net income for the quarter came in at $1.42 billion, or $1.80 per share, compared with $1.21 billion, or $1.51 per share during the same quarter a year ago. Adjusted per-share earnings were $1.66, above FactSet's consensus of $1.45. Revenue for the first quarter hit $7.74 billion, up from last year's $7.31 during the same period and above FactSet's consensus of $7.67. Time Warner's revenue growth was driven by its Warner Bros. film division, where revenue increased 8% to $3.37 billion due to the theatrical releases of "Kong: Skull Island" and "The LEGO Batman Movie" and home entertainment revenue from "Fantastic Beasts and Where to Find Them." Turner Broadcasting revenue rose 6% due to better subscription revenues, though, advertising revenue fell 2% in the quarter. Revenue at HBO increased 4% thanks to an increase in subscription revenue. HBO debuted the limited series "Big Little Lies," which reached more than 8 million viewers, during the first quarter, along with the final season of "Girls." Shares of Time Warner were inactive in premarket trade, but have gained nearly 3% in the year to date and almost 35% in the last 12 months, while the S&P 500 index is up nearly 7% in the year and 16% over the prior 12-month period.