Note that subscription revenues (fees paid by cable MSOs like Comcast) were up, but advertising revenues were down.
Cable networks led the way again for Time Warner, reporting second quarter earnings Wednesday before the market open.
The company’s networks unit, which comprises Turner Entertainment [TNT, TBS, TCM, CNN, TruTV, AdultSwim, Cartoon Network, Turner Sports) and HBO, recorded operating income of $875 million, up 17% for the period ended June 30. Adjusted operating income rose 14%, to $981 million, excluding one-off items such as write-downs, gains and losses on asset sales and securities litigation.
Network revenue rose 5%, to $3 billion, with an 8% growth in subscription revenue and a 3% decrease in advertising revenue. By comparison, Viacom’s cable networks recorded a 6% dip in second quarter ad revenue on Tuesday. The company explained that advertising revenue fell largely as a result of a weakened demand for Turner’s international cable channels.
via Broadcasting & Cable.