Time Warner Inc. saw its second-quarter net income and revenues rise year over year, spurred by subscription revenue growth and the box office performance of "Wonder Woman."
The company on Aug. 2 reported an 11.6% year-over-year gain in second-quarter net income attributable to company shareholders to $1.06 billion, or $1.34 per share, from net income of $952.0 million, or $1.20 per share.
The second-quarter S&P Capital IQ consensus estimate for GAAP EPS was $1.19.
Total revenues for the second quarter grew 5% to $7.33 billion due to increases at all operating divisions, partially offset by higher intersegment eliminations.
Revenues at Turner increased 3% to $3.10 billion, while Home Box Office revenue increased 1% to $1.48 billion.
"In ad-supported cable, Turner was once again home to three of the top five networks among adults 18-49 in primetime," Time Warner Chairman and CEO Jeff Bewkes said, adding that "CNN (US) also continued to distinguish itself, posting its most-watched second quarter ever."
Bewkes also highlighted the content company's "creative excellence," noting that Time Warner received more than 150 Primetime Emmy nominations.
"These results and accolades reflect strong execution and the investments we've been making, both in the best content and in ensuring that we deliver our content across platforms to offer engaging experiences for our audiences," he said.
At Warner Bros., revenues increased 12% to $2.99 billion due to higher theatrical and video game revenues, partially offset by lower TV revenues. Notably, Warner's "Wonder Woman" has been the biggest movie of the summer so far with a worldwide gross of about $800 million.
Time Warner reaffirmed its full-year 2017 outlook. The company expects adjusted operating income to increase in the high single-digits based on foreign exchange rates.
At Home Box Office, the company expects subscription revenue growth to increase in the second half of the year relative to the second quarter and its total revenues in the second half of the year to increase at a higher rate compared to the first half. The company also expects Home Box Office's programming costs to rise at a higher rate compared to the prior year due to the timing of original programming, while revenue growth is expected to more than offset expense growth, resulting in higher operating income in the second half of the year.
At Warner Bros., the company expects operating income growth in the second half of the year to be weighted to the fourth quarter, notably due to the scheduled theatrical release of "Justice League" and the video game release of "Middle-earth: Shadow of War."
The company continues to expect its pending merger with AT&T Inc. to close by the end of the year.
Bewkes said "accelerating our pace of innovation and being able to connect more directly with consumers are among the exciting reasons" for the merger.