Time Warner Reports Q1 2014 Earnings
Shares of Times Warner, Inc. (NYSE: TWX) are trading up approximately two percent following the release of its first quarter 2014 earnings report.
In addition to reporting its earnings, Time Warner also provided updated guidance for the rest of fiscal 2014.
CEO Jeff Bewkes commented, "We are off to a very strong start in 2014, with results that demonstrate both the returns we can achieve on our investments in great storytelling and the growth potential of our businesses." Bewkes also noted that the company expects to "spin off" Time Inc. as a separate publicly traded company later this quarter, and as such has provided first quarter result both including and excluding Time Inc.
Results Excluding Time Inc.
The company reported $6.8 billion in revenues, an increase of 10 percent. This growth in revenue has been primarily attributed to growth at Warner Bros., Turner and Home Box Office (HBO). The increase revenue was accompanied by an 44 percent increase in operating income. Additionally adjusted operating income and operating income margins were 24 and 30 percent, respectively, up from 23 for each from the prior year quarter.
Adjusted EPS came in at $0.97 up from $0.77 a year ago. Diluted income per share for continuing operations was reported at $1.50 for the quarter up from $0.80 from the same quarter last year.
Both cash provided from continuing operations and free cash flows totaled $1.7 billion.
Results Including Time Inc.
For the first quarter in 2014 including Time Inc. the company grew revenues by 9 percent to $7.5 billion. Additionally, Time Warner grew adjusted operating income and operating income seven percent to $1.5 billion and 37 percent to 1.9 billion, respectively. The company reported respective margins on adjusted operating income and operating income of 20 percent and 26 percent versus 21 percent and 20 percent a year ago.
Adjusted EPS was up 20 percent to $0.91 from $0.76 last year, and diluted income per common share from continuing operations was $1.42 compared to $0.79 in the same quarter last year.
Cash provided by operations from continuing operations and free cash flows both totaled$1.7 billion.
For the full year 2014 Time Warner expects and adjusted EPS growth rate in the low teens based on a 2013 adjusted EPS of $3.51.
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