Time Warner reported higher than expected earnings in the second quarter as its cable networks reported strong advertising growth.
Net income was $638 million, or 59 cents a share, up from $562 million, or 49 cents a share, a year ago.
Revenues rose 10% to $7 billion, which the company said was its highest growth rate since the third quarter of 2007. Ad revenues were up 8%, idriven by an 11% gain at Turner Broadcasting.
Analysts were expecting a profit of 56 cents on revenue of $6.81 billion
"We had another successful quarter and remainon track to meet our financial goals for the year," Jeff Bewkes, chairman and CEO said in a statement." In the 2011-2012 upfront, advertisers recognized the outstanding reach and appeal of Turner's cable networks by making significantly higher commitments across its portfolio. And HBO, which has the strongest programming lineup in its history, just received the most Primetime Emmy nominations of any network for the 11th year in a row."
Bewkes added that the company was making progress shaping its business models to benefit from the transition to a digital media environment. "We also have bought back $2.3 billion of our shares so far this year, reflecting our confidence in our competitive position and growth prospects and our dedication to providing attractive shareholder returns."
Time Warner's networks group, which includes Turner and HBO, reported that adjusted operating income rose 5% to $1.03 billion in the quarter from $981 million the year before. Programming costs rose 9% because of higher expenses for original and sports programming, notably the NCAA Men's Division I Basketball Championship. Operating income was also affected by expenses marketing HBO Go.
Time Warner said that for the full year it expected net income per share growth to finish in the low teens from last year's $2.41 a share.
Revenue for the networks group rose 9% to $3.45 billion from $3.17 billion. Subscription revenues were up 7%, ad revenues were up 11% and content revenues were up 18%.