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Video streaming, Batman drive Time Warner’s

Time Warner Inc’s quarterly profit blew past analysts’ estimates, helped by a deal with video-streaming service Hulu and the release of “Batman: Arkham Knight” and “Mortal Kombat X” videogames.
However, Time Warner’s shares were down about 3 percent in premarket trading on Wednesday after the company left its 2015 earnings forecast unchanged.
“Given Time Warner’s unchanged guidance, the beat is likely due to timing of revenue and costs,” CLSA analyst Vasily Karasyov wrote in a note to clients.
Time Warner is trying to grab a larger share of the video-streaming market as consumers increasingly take to watching television shows online, a trend dubbed as “cord cutting”.
In April, the company’s Turner division, owner of channels such as CNN and TNT, granted exclusive subscription video-on-demand rights to its programs from Cartoon Network and Adult Swim to Hulu.
Time Warner also launched its own standalone streaming service, HBO Now, in the same month.
The deal with Hulu led to a 48 percent rise in content and other revenue at Turner in the second quarter ended June 30, Time Warner said on Wednesday. Total revenue at the business rose 3 percent.
Time Warner said it also benefited from an increase in television licensing revenue at its Warner Bros studio business as channels licensed its popular “The Big Bang Theory” comedy.
Turner and Warner Bros. together make up about 83 percent of Time Warner’s total revenue. The rest comes from its HBO network, which airs the hit medieval fantasy series, “Game of Thrones”.
Time Warner’s overall revenue rose 8 percent to $7.35 billion, above the average analyst estimate of $6.90 billion.
Net income rose to $971 million, or $1.16 per share, from $850 million, or 95 cents per share, a year earlier.
Excluding items, Time Warner earned $1.25 per share. Analysts on average expected earnings of $1.03, according to Thomson Reuters I/B/E/S.
The company’s shares were down at $85 in premarket trading, after closing at $87.65 on Tuesday. The stock had risen about 3 percent this year.
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