A record quarter at Time Warner Inc.’s networks, including Atlanta-based TNT and TBS, helped lift the media giant’s third-quarter profits.
Time Warner reported net profit of $838 million or 86 cents a share for the quarter, compared with $822 million, or 78 cents a share, in the same period last year. Revenue fell 3 percent, to $6.8 billion, during the quarter ended Sept. 30.
The company reported a 12 percent increase in operating income to $1.2 billion for its networks, which include HBO as well as Turner Broadcasting System’s TNT, TBS, The Cartoon Network and TruTV. Time Warner Chairman and Chief Executive Officer Jeff Bewkes attributed TBS and TNT’s success to a slate of original programming as well as Major League Baseball.
TBS recently renewed its contract with the MLB through 2021.
“Baseball is a marquis property with a long history on TBS,” Bewkes said Wednesday.
Asked whether Turner would expand its sports programming deals to include other major franchises such as the NFL, Bewkes remained cautious.
“Sports can be a very important part of the offering at Turner, we just need to have the right one,” he said. “If an NFL package came up … just like the NCAA, we would consider something of that size if we were confident that we could monetize that. I’m just not clear what the choices are.”
CNN remains a challenge for Turner and its parent company, Bewkes acknowledged. The ratings-plagued network has had recent successes because of Hurricane Sandy and the presidential election, reaffirming that breaking news remains its sweet spot.
But “CNN can do a better job of tracking and retaining audience when news isn’t breaking,” Bewkes said.
Bewkes said he hopes to name a new chief for CNN by the end of the year. CNN veteran Jim Walton announced in July that he would leave the network after 10 years of heading up CNN Worldwide.
About the Author
