Time Warner TWXdelivered first-quarter 2018 adjusted earnings of $2.28 per share, which beat the Zacks Consensus Estimate by 52 cents. The figure surged 37.3% year over year.
Total revenues of $7.99 billion increased 3.4% year over year on account of growth witnessed across Home Box Office (“HBO”) and Turner.
Time Warner’s planned takeover by AT&T Tin a deal worth $85.4 billion hit roadblock after Department of Justice (DOJ) raised antitrust concerns over the proposed merger. On Nov 20, 2017, the DOJ filed a lawsuit to enjoin the merger. The trial began in the week of Mar 19, and the parties’ presentation of their cases is anticipated to conclude in early May.
Time Warner and AT&T have agreed to extend the termination date of the “Merger Agreement” to Apr 22. The companies have agreed to waive, until Jun 21, 2018, its right to terminate the Merger Agreement based on the deal not being completed by Apr 22, 2018.
Segment Details
Turner revenues (42% of total revenues) increased 8.3% to $3.34 billion on account of 8% increase in subscription revenues, 9% increase in content revenues and 9% increase in advertising revenues.
The increase in subscription revenues reflected higher domestic subscription revenues of $66 million due to higher contractual rates. However, subscriber base declined in the quarter.