Time Warner reported a higher-than-expected quarterly profit as it signed up more viewers for its premium Home Box Office network, and disclosed a 10% stake in streaming TV service Hulu.
The company’s shares were up 1.58% in premarket trading Wednesday.
Time Warner (TWX) also said Turner’s networks and Turner Classic Movies will be available live and on-demand on Hulu’s new live-streaming service, which is slated to launch early next year.
Time Warner, the owner of CNN and Cartoon Network channels, joins Walt Disney (DIS), 21st Century Fox (FOXA), and Comcast (CMCSA) as a shareholder in Hulu.
The deal comes at a time when Time Warner is facing stiff competition from streaming services, particularly Netflix and Amazon Prime, as young viewers increasingly ditch traditional cable and shift to online services for their entertainment fix.
The company launched HBO Now last year, a standalone streaming service, where viewers can watch HBO programs at any time without a cable subscription.
Time Warner’s revenue from the Turner division, home to CNN, rose 6.5% during the quarter. Revenue at HBO, which hosts the popular hit show Game of Thrones, rose 2%.
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The company’s net income fell to $951 million, or $1.20 per share, in the second quarter ended June 30, from $971 million, or $1.16 per share, a year earlier.
Excluding items, the company earned $1.29 per share, compared with the average analyst estimate of $1.16, according to Thomson Reuters I/B/E/S.
Revenue fell to $6.95 billion from $7.35 billion, mainly due to a decline in its Warner Bros movie studio.
