Blog Post

Time Warner Publishing Revs Remain Flat, Despite Ad Gains

Time (NYSE: TWX) Warner’s filmed entertainment and publishing segments experienced a fairly uneven quarter as its networks business, through Turner Broadcasting and HBO, provided enough of a revenue boost to offset declines elsewhere at the company.

Publishing: Subscriptions for the print magazines continued to decline, this time by 5 percent. As a result, revenues were essentially flat at $798 million. The “Other” revenue category saw an 18 percent gain. Time Inc. was able to benefit from the continued rebound in advertising with a 21.2 percent increase, something that other magazine publishers such as Meredith (NYSE: MDP) Corp.have had trouble capturing in Q1.

Networks: Revenues jumped 18 percent to $3.5 billion, benefiting from growth of 9 percent in subscription dollars, 31 percent in ad sales and 48 percent in content fees. The NCAA Division I Men’s Basketball Championship events on Turner provided a particular shot in the arm to the segment’s ad revenues.

Filmed entertainment: Down 3 percent. The company pointed to a lack of home video hits this year versus last year.

In Q2, Time Warner initiated two deals with Apple (NSDQ: AAPL) that could pay off down the road. The HBO Go iPad app was introduced, which is part of the “TV Everywhere” concept, where cable subscribers can watch programming on additional devices. Separately, Time Inc. expanded an agreement last week with Apple to provide print subscribers to Time, Fortune and Sports Illustrated with authenticated access to the iPad editions of the magazines at no extra cost. People magazine subs have already been given that opportunity over the past few months.