Time Warner profit beats expectations, boosted by Turner, HBO

Wed May 4, 2016 10:39am EDT
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By Rishika S and Jessica Toonkel

(Reuters) - Time Warner Inc reported higher-than-expected earnings on Wednesday on strong revenue from its HBO cable channel and Turner Broadcasting unit.

The New York-based company said first-quarter net income rose to $1.21 billion, or $1.51 per share, from $970 million, or $1.15 per share, a year earlier.

Excluding special items, earnings were $1.49 per share.

Analysts on average had expected a profit of $1.30 per share, according to Thomson Reuters I/B/E/S.

Despite the profit beat, however, the company said it still expected 2016 earnings before special items to be in the range of $5.30 to $5.40 a share.

Revenue rose to $7.31 billion from $7.13 billion, roughly in line with analysts' expectations.

The company's shares were up 3.1 percent at $75.95 in morning trading.

Revenue from HBO, home to popular shows such as "Game of Thrones," rose 7.7 percent in the quarter.   Continued...

A woman walks past the Time Warner Center near Columbus Circle in Manhattan, New York July 16, 2014.  REUTERS/Adrees Latif