Time Warner Inc. (TWX) has reported a 17.30 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $1,424 million, or $1.80 a share in the quarter, compared with $1,214 million, or $1.51 a share for the same period last year. On the other hand, adjusted income from continuing operations for the quarter stood at $1,308 million, or $1.66 a share compared with $1,192 million or $1.49 a share, a year ago.
Revenue during the quarter grew 5.84 percent to $7,735 million from $7,308 million in the previous year period. Gross margin for the quarter contracted 122 basis points over the previous year period to 43.98 percent. Total expenses were 73.16 percent of quarterly revenues, up from 72.69 percent for the same period last year. That has resulted in a contraction of 47 basis points in operating margin to 26.84 percent.
Operating income for the quarter was $2,076 million, compared with $1,996 million in the previous year period.
However, the adjusted operating income for the quarter stood at $2,153 million compared to $2,012 million in the prior year period. At the same time, adjusted operating margin improved 30 basis points in the quarter to 27.83 percent from 27.53 percent in the last year period.
Chairman and Chief Executive Officer Jeff Bewkes said: "We're off to a strong start to 2017, as we continue to benefit from the investmentswe�'re making in the best content while also developing new revenue streams that will drive growth and meet consumer demand for great experiences built around their favorite programming and brands. Warner Bros. delighted audiences in both filmand television, with global hits in Kong: Skull Island and The LEGO Batman Movie and more series across broadcast for the current season than any other studio."
Operating cash flow improves significantly
Time Warner Inc. has generated cash of $1,461 million from operating activities during the quarter, up 94.02 percent or $708 million, when compared with the last year period.
The company has spent $26 million cash to meet investing activities during the quarter as against cash outgo of $155 million in the last year period.
The company has spent $1,524 million cash to carry out financing activities during the quarter as against cash outgo of $1,213 million in the last year period.
Cash and cash equivalents stood at $1,450 million as on Mar. 31, 2017, down 5.84 percent or $90 million from $1,540 million on Mar. 31, 2016.
Working capital increases marginally
Time Warner Inc. has recorded an increase in the working capital over the last year. It stood at $4,746 million as at Mar. 31, 2017, up 3.22 percent or $148 million from $4,598 million on Mar. 31, 2016. Current ratio was at 1.58 as on Mar. 31, 2017, down from 1.64 on Mar. 31, 2016.
Days sales outstanding went down to 93 days for the quarter compared with 95 days for the same period last year.
Days inventory outstanding has decreased to 21 days for the quarter compared with 38 days for the previous year period.
Debt comes down marginally
Time Warner Inc. has recorded a decline in total debt over the last one year. It stood at $23,210 million as on Mar. 31, 2017, down 1.96 percent or $463 million from $23,673 million on Mar. 31, 2016. Total debt was 35.35 percent of total assets as on Mar. 31, 2017, compared with 37.43 percent on Mar. 31, 2016. Debt to equity ratio was at 0.91 as on Mar. 31, 2017, down from 0.99 as on Mar. 31, 2016.
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