Time Warner (TWX) reported second quarter net income rose 7.2% to $562 million, or 49 cents pare share, from $524 million, or 43 cents a share, in the year-ago period. The media giant said this was due to strong results in all segments and cost-cutting measures, including spinning off its AOL (AOL) and Time Warner Cable units.
Adjusted operating income rose 15% to $1.2 billion, or 50 cents per share, topping analysts' estimates of 45 cents per share. Revenue grew by 8% to $6.4 billion, also beating analysts' forecast for revenue of $6.2 billion.
"Time Warner is off to a great start in 2010, delivering record financial results for our first quarter. We posted our biggest revenue gain in nearly two years, and Adjusted Operating Income grew at all of our businesses. The advertising recovery benefited both Turner and Time Inc., while the continuing popularity of The Blind Side and Sherlock Holmes helped lift Warner Bros.' home video sales," said Chairman and CEO Jeff Bewkes.
Time Warner also updated its 2010 full-year business outlook. The media company now expects its 2010 full-year growth rate in adjusted earnings per share from continuing operations to be at least 20%, off a 2009 adjusted EPS base of $1.83. In its recent update in May, Time Warner expected a growth rate at least in the mid-teens.
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