Turner Broadcasting and HBO saw revenue increase 4 percent to $14.2 billion during the fourth quarter, thanks mostly to increased subscription fees from cable and satellite TV affiliates, parent Time Warner Inc. (NYSE: TWX) said Wednesday.
Time Warner said subscription revenue from its networks division increased by $144 million, or 7 percent. Growth in the number of domestic HBO subscribers also contributed to the gain, the company added. HBO has benefited from the popularity of original programs such as Game of Thrones and Girls as well as demand for its TV Everywhere app HBO Go.
Time Warner said ad revenue from its networks division, which includes TNT, TBS, Cartoon Network, CNN and truTV, increased by 3 percent, or $38 million. The cable networks division generated $1.4 billion in operating income, up 21 percent compared to the fourth quarter of 2011.
Growth at the networks division was offset by decreased revenue from Time Warner's film and TV entertainment, and publishing segments. The media giant said it posted $8.2 billion in total revenue during the fourth quarter, which was flat compared to the fourth quarter of 2011. It posted $1.2 billion ($1.21 per share) in net income in the fourth quarter, up from net income of $773 million (76 cents per share) in the fourth quarter of 2011.
- see the release
Special Report: Cable in the fourth quarter of 2012
Time Warner CEO: Broadband only version of HBO 'not ready for primetime'
Time Warner recruits NBC veteran Jeff Zucker to run CNN Worldwide
Apple eyeing Time Warner's HBO Go app for Apple TV by mid-year