- Time Warner (NYSE:TWX) is sliding premarket, -7.6%, after its Q4 results showed a significant miss on revenues as Warner Bros. declined, though profits beat expectations and the company offered full-year guidance better than expected.
- As with Viacom and Paramount, a lack of hit movies hurt Warner Bros. with a comp against the prior year's Hobbit sequel, as well as Interstellar.
- Turner benefited from a bump in ad revenues (up 5% to $52M), while subscription, content and other revenues were flat. HBO, meanwhile, rode a 20% gain in Content and other revenues boosted by international licensing.
- Revenue by segment: Turner, $2.66B (up 2.1%); Home Box Office, $1.41B (up 5.5%); Warner Bros., $3.31B (down 13.4%). Adjusted operating income was flat at HBO, but fell slightly at Warner Bros. and dropped 15% at Turner.
- It's bumping its quarterly dividend 15% for March and has authorized a new $5B share repurchase program.
- The company guided to full-year adjusted EPS of $5.30-$5.40, stronger than a consensus expectation of $5.26.
- Conference call to come at 10:30 a.m. ET.
- Press Release