‘Harry Potter’ spinoff gives Time Warner a 4Q boost
NEW YORK (AP) — Time Warner, being acquired by AT&T, reported a 65 percent decline in profit during the fourth quarter.
If adjusted for non-recurring costs and benefits, the results beat Wall Street expectations thanks to a boost in revenue from its “Harry Potter” spinoff movie “Fantastic Beasts and Where to Find Them.”
The New York company, which owns cable channel HBO and TV and movie studio Warner Bros., still expects the $85 billion takeover deal by AT&T Inc. to be completed later this year.
Net income was $293 million, or 37 cents, in the three months ending Dec. 31, compared with $857 million, or $1.06 per share, in the same period a year ago. Earnings, adjusted for non-recurring costs and to account for discontinued operations, came to $1.25 per share, beating the $1.19 per share analysts expected, according to Zacks Investment Research.
Revenue rose 11 percent to $7.89 billion, beating the $7.75 billion that analyst expected, thanks to its Warner Bros. unit. Revenue at the studio, which produces “The Big Bang Theory” and “Fantastic Beasts,” rose 17 percent. Revenue at cable channel operator Turner, which includes CNN, Cartoon Network and TBS, rose 7 percent and revenue at HBO rose 6 percent.
For the year, the company reported profit of $3.93 billion, or $4.96 per share. Revenue was reported as $29.32 billion.
Shares of Time Warner Inc. added 81 cents to $97.03 before the stock market opened Wednesday.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on TWX at https://www.zacks.com/ap/TWX
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