Time Warner Profits Up Thanks to Games

Time WarnerTime Warner recently released their fourth quarter 2011 earnings statement, showing that their revenues grew by 5% to $8.2 billion from the previous quarter. The company saw an over all revenue growth of 8% from 2010 to $29 billion. This increase was attributed largely to the significant gains in the Networks and Filmed Entertainment divisions.

The Filmed Entertainment division grew by 7% ($254 million) to $3.9 billion for the fourth quarter. This came from higher demand in the video game and home entertainment sales and new superscription video-on-demand agreements. This is due in part to Batman: Arkham City: since its release on October 2011, it has shipped more than 6 million units worldwide and was one of the top 10 best-selling games in North America. The Filmed Entertainment division also saw strong sales with several Lego titles and Mortal Kombat 9. Time Warner saw strong performance with the theatrical and home entertainment release of Harry Potter and the Deathly Hallows: Part 2. Television license fees increased due mainly to improved worldwide syndication, which included the off-network availability of The Big Bang Theory. Altogether, this shows an increase in revenues of 9% ($1 billion) to $12.6 billion for the full-year result for the Filmed Entertainment division.

Time Warners Network division (Turner Broadcasting and HBO) revenues grew by 9% ($1.2 billion) to $13.7 billion for the full-year results. The biggest revenue came from Content, which saw an increase of 21% ($202 million). Content revenues benefited from higher sales of HBO original programming and higher licensing revenues at Turner. The Publishing division was the only one that didn’t perform as revenues were flat at $3.7 billion. Time Warner Chairman and Chief Executive Officer Jeff Bewkes said the following:

“That performance is a testament to the quality of our content, the strength of our brands, our creative and managerial talent and our competitive position. We also continued to roll out Content Everywhere versions of our products across all our divisions, harnessing technology to give consumers more ways, places and platforms on which to enjoy our great content.”

Analysis: Time Warner has had excellent partnership with Rocksteady Studios and their Batman games. Notably, Batman: Arkham City has earned an average score greater then 90% on all platforms according to Metacritic. There’s also another Batman movie coming out later this year as well as a few more Lego games, so it isn’t hard to imagine that Time Warner will do well in 2012.


About Brandon Mietzner