Time Warner earnings get boost from college hoops, CNN

Time Warner’s first-quarter earnings showed year-to-year improvements in revenue and profit thanks to strong performances from its TV units Turner Broadcasting and HBO.

Revenue grew 3% to $7.3 billion, while adjusted operating income was up 11% to $2 billion.

The company said Wednesday that Turner saw an 11% jump in subscription revenue, as it has seen ratings gains and higher carriage fees from cable and satellite operators. The unit, which includes cable networks TBS, TNT and CNN, is also benefiting from a robust TV advertising market.

Overall, Turner revenue increased 7% to $2.9 billion, with adjusted operating income up 10% to $1.2 billion.

The quarter included Turner’s first-ever telecast of the final game of the NCAA Men’s Basketball Championship. The tournament brought record revenue to TBS, according to Time Warner Chairman Jeff Bewkes. Turner recently extended its deal to carry the tournament in partnership with CBS through 2032.

CNN’s financial performance has also been strong as the cable news network more than doubled its prime-time audience in the first quarter, thanks to its coverage of the presidential race and its original series such as “Race for the White House.”

Revenue at premium cable network HBO was up 8% to $1.5 billion, thanks to subscription gains, rate increases and the licensing of its shows to international markets.

Warner Bros. revenue decreased 3% to $3.1 billion, due to a smaller take in theatrical box office. Last year, the movie studio had “American Sniper” and “The Hobbit: The Battle of the Five Armies” in theaters. This year’s big release from the movie studio, “Batman v Superman: Dawn of Justice,” opened late in the quarter.

Television revenue for Warner Bros. was up thanks to higher growth in fees from domestic and international licensing fees.

Adjusted operating income at Warner Bros. was up 29% to $426 million. The unit saw lower costs due to fewer theatrical releases in the quarter.