Thanks to the video games and the television series, Time Warner reported a second quarter result which exceeded analysts' expectations.
The entertainment company had a revenue of nearly $7.4 billion to an 8 percent year-to-year increase, according to Investopedia. The result was higher compared to the projected $6.9 billion revenue and earnings per share of $1.03 by the economists.
The company's net profit boosted by 14 percent to $971 million of $1.16 per share.
Three of Time Warner's operating divisions reported an increase of revenue during the quarter. The largest is Warner Bros., whose profit advanced by 15 percent to a total of $3.3 billion and the reason behind that was the release of "Batman: Arkham Knight and Mortal Kombat X."
Another unit that contributed to the company's revenue increase is its television properties, pointing out that it benefited from the shows "The Big Bang Theory" and "Seinfeld."
Eighty-three percent of the total revenue came from Turner and Warner Bros., while the remaining was contributed by HBO, the Irish Times reported. Time Warner reported a 3 percent increase after HBO Now, a standalone video streaming service of HBO was released.
Despite the revenue and profit increase, Time Warner still expects an adjusted earnings per share of $4.60 to $4.70. It means that the company is anticipating that nothing out of the ordinary will happen this third and fourth quarter.
Meanwhile, shares of Time Warner and other large media companies such as Comcast, 21st Century Fox, CBS, AMC Network, Viacom and Discovery Communication reportedly dropped on Wednesday, New York Times learned.
The decrease in stocks from these entertainment companies alarmed the investors. However, analysts warned them for mistakenly entering into a panic mode.
Their anxiety was fired up by the the fact that digital media, such as Netflix and Facebook, are on the rise. Analysts said that nowadays people watch less traditional television and do more online activities, plus, the social networking site has captured a larger share of dollars in terms of advertisement.
