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.
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