Time Warner CEO Jeffrey Bewkes
Photograph by Scott Eells/Bloomberg—Getty Images
By Reuters
February 10, 2016

Time Warner, the owner of cable channels CNN and HBO and movie studio Warner Bros, raised its 2016 adjusted profit forecast above analysts’ expectations and set a $5 billion share buyback program.

The company’s shares were up 1.3% in premarket trading on Wednesday.

Time Warner (twx) said it expected adjusted earnings of between $5.30 per share and $5.40 per share for 2016. Analysts on average were expecting $5.26 per share, according to Thomson Reuters I/B/E/S.

Time Warner had cut its adjusted profit forecast to $5.25 per share from “close to $6” in November, citing a strong dollar.

Time Warner reported a 6% fall in total revenue to $7.08 billion in the fourth quarter ended Dec. 31, hurt by a lack of hit movie releases from Warner Bros.

Revenue at Warner Bros fell 13% to $3.3 billion. In the year-earlier quarter, the studio released hit movies such as “The Hobbit: The Battle of the Five Armies,” “Interstellar,” and “Annabelle.”

The $5 billion share buyback was effective Jan. 1 and includes the amount remaining under a prior authorization, the company said.

Net income attributable to Time Warner shareholders rose to $857 million, or $1.06 per share, from $718 million, or 84 cents per share.

Excluding items, the company earned $1.06 per share.

Analysts on average had expected a profit of $1.01 per share and revenue of $7.53 billion.

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