Shares of Time Warner Inc. (NYSE: TWX) are down more than 3% this morning after reporting better-than-expected second quarter earnings supported by healthy revenues from the company’s cable business and movie studio.
Time Warner has been using several channels to distribute their content online. The company introduced a online version of HBO back in April and their Turner channels which includes CNN, TNT, TBS and Cartoon Network, were distributed Dish Network’s (NASDAQ: DISH) Sling TV service. In addition, it was also announced that Time Warner granted exclusive subscription video-on-demand rights to its program from Turner channel, Cartoon Network, to Hulu, the online video-streaming platform. The deal with Hulu contributed to a 48% increase in revenue at the company’s Turner division.
Time Warner reported that total revenue increased by 8% to $7.35 billion, beating analysts’ forecasts of $6.9 billion, while net income increased from $850 million or $0.95 per share to $971 million or $1.16 per share, year-over-year. The company also reaffirmed its outlook of $4.60 to $4.70 EPS for the 2015 year with the earnings report.
Time Warner shares are currently trading at $84.50, down from previous day’s close of $87.65.