Upcoming AWS Coverage on CBS Corp. Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 22, 2017 / Active Wall St. announces its post-earnings coverage on Time Warner Inc. (NYSE: TWX). The Company announced its first quarter fiscal 2017 financial results on May 03, 2017. The media giant, which had accepted the buyout offer from AT&T, exceeded top- and bottom-line expectations. Register with us now for your free membership at:

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One of Time Warner's competitors within the Entertainment - Diversified space, CBS Corp. (NYSE: CBS), reported results for Q1 2017 on May 04, 2017. AWS will be initiating a research report on CBS Corp. in the coming days.

Today, AWS is promoting its earnings coverage on TWX; touching on CBS. Get our free coverage by signing up to:

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Earnings Reviewed

For the quarter ended March 31, 2017, Time Warner's revenues grew 6% to $7.74 billion compared to revenue of $7.31 billion in Q1 206, driven by increases at all operating divisions, partially offset by higher intersegment eliminations. The Company's revenue numbers topped analysts' consensus of $7.66 billion.

For Q1 2017, Time Warner's operating income increased 4% to $2.08 billion compared to $2.00 billion in Q1 2016, while adjusted operating income increased 7% on a y-o-y basis to $2.2 billion due to growth at Home Box Office and Warner Bros. and lower corporate expenses, partially offset by a decrease at Turner and higher intersegment eliminations.

For the three months ended March 31, 2017, the Company reported income from continuing operations attributable to Time Warner Inc.'s shareholders of $1.4 billion and diluted income per common share of $1.80. This compared to reported income from continuing operations attributable to Time Warner Inc.'s shareholders for Q1 2016 of $1.2 billion and EPS of $1.46. The increase in EPS primarily reflected higher operating income, lower interest expense, and a lower effective tax rate due in part to the Company's adoption of new guidance on accounting for tax benefits on equity-based compensation. Time Warner's adjusted EPS was $1.66 for the reported quarter compared to $1.49 for the year ago same quarter, and also surpassing Wall Street's earnings expectations of $1.44 per share.

For Q1 2017, Time Warner's cash provided by operations from continuing operations reached $1.5 billion and free cash flow totaled $1.4 billion.

Segment Performance

During Q1 2017, Time Warner's Turner division's revenues increased 6% to $3.09 billion compared to revenue of $2.91 billion in Q1 2016, driven by an increase of 12% in Subscription revenues and 16% in Content and other revenues, partially offset by a decline of 2% in Advertising revenues. Subscription revenues benefited from higher domestic rates and growth at Turner's international networks, partially offset by lower domestic subscribers. Content and other revenues increased due to higher domestic licensing revenues. Turner's operating income decreased 6% to $1.17 billion in the reported quarter compared to $1.24 billion in the prior year's same quarter. The growth in revenues was more than offset by higher expenses mainly due to increased programming costs. The segment's adjusted operating income decreased 4% to $1.2 billion.

For Q1 2017, Time Warner's HOME BOX OFFICE (HBO) revenues grew 4% to $1.57 billion compared to revenues of $1.51 billion in Q1 2016, reflecting an increase of 5% in Subscription revenues, partially offset by a decline of 1% in Content and other revenues. Subscription revenues increased due to higher domestic rates and subscribers and international growth. HBO's operating income surged 22% on a y-o-y basis to $583 million in the reported quarter, reflecting the growth in revenues and lower selling, general, and administrative, programming and distribution expenses.

Time Warner's Warner Bros. division recorded revenues growth of 8% to $3.37 billion in Q1 2017 compared to revenue of $3.11 billion in Q1 2016 primarily due to higher television and theatrical revenues partially offset by lower videogames revenues. The segment's operating income advanced 15% to $488 million in the reported quarter, reflecting an increase in revenues, partially offset by higher associated theatrical and television costs of revenues and print and advertising expenses.

Stock Performance

At the closing bell, on Friday, May 19, 2017, Time Warner's share price finished the trading session at $97.63, slightly rising 0.64%. A total volume of 3.17 million shares exchanged hands, which was higher than the 3 months average volume of 3.09 million shares. The stock has rallied 10.69% and 39.00% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 1.56%. The stock is trading at a PE ratio of 18.46 and has a dividend yield of 1.65%.

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SOURCE: Active Wall Street