Diminished third quarter earnings were attributed to a strategy shift at AOL, where subscriber income and advertising growth both faltered. Elsewhere within TW there were revenue gains, despite which the company recorded a 53% dive in net income. This mostly reflected substantial revenues from asset sales in the year-ago period. Earnings were 24 cents a share, compared with 33 cents a year earlier, in line with analyst forecasts.
America's largest satellite-TV operator reported net income of $319 million (€217.5m; £151.58m), compared year-on-year with $370.2m. Revenue rose 18% to $4.32 billion reflecting both subscriber growth and an increase in average revenue per subscriber. Operating costs surged 24%, largely due to programming-related and subscriber-acquisition costs, both up 20%.
Profit fell 13% in the fiscal first quarter ended September 30, due to asset sale gains in last year's comparable period. Operating income, however, rose 23% on strong box-office results for films such as The Simpsons Movie and Live Free or Die Hard; also higher earnings from cable-TV networks. Net income fell to $732 million (€499.08m; £347.83m) from $843m. Revenue rose 19% to $7.07bn.
Data sourced from Wall Street Journal Online. additional content by WARC staff