Turner, HBO Drive Time Warner Q1

Sub fees rise 11%, ad revenue up 5% at cable nets
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Overall revenue increased 3% and adjusted operating income was up 11% in the first quarter at Time Warner Inc., driven by gains  at its Turner Broadcasting cable networks and HBO.

Consolidated adjusted operating income increased 11% to $2 billion in the period.

At Turner, revenue increased 7% to $2.9 billion, driven by an 11% increase in subscription revenue and a 5% rise in ad sales. Adjusted operating income increased 10% to $1.2 billion at the cable unit, partially offset by a 4% rise in programming costs.

At HBO, revenue rose 8% to $1.5 billion, spurred by a 5% increase in subscription fees and a 23% rise in content and other costs, mainly due to higher international licensing fees. Adjusted operating income was up 6% to $486 million, partially offset by an 11% rise in original programming costs.

At its Warner Bros. film studio, revenue declined 3% to $3.1 billion, due to lower box office revenue. But adjusted operating income increased 29% in the period.

 “We’re off to a terrific start to 2016, as we benefit from the investments we’ve been making in great content and new capabilities in order to take advantage of the growing demand for high-quality video content around the world," chairman and CEO Jeff Bewkes said in a statement. 

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