Time Warner Inc (TWX) has reported a 41.74 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $1,467 million, or $1.86 a share in the quarter, compared with $1,035 million, or $1.26 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1,443 million, or $1.83 a share compared with $1,029 million or $1.25 a share, a year ago.
Revenue during the quarter grew 9.19 percent to $7,167 million from $6,564 million in the previous year period. Gross margin for the quarter contracted 32 basis points over the previous year period to 45.96 percent. Total expenses were 71.90 percent of quarterly revenues, down from 72.06 percent for the same period last year. This has led to an improvement of 16 basis points in operating margin to 28.10 percent.
Operating income for the quarter was $2,014 million, compared with $1,834 million in the previous year period.
However, the adjusted operating income for the quarter stood at $2,070 million compared to $1,842 million in the prior year period. At the same time, adjusted operating margin improved 82 basis points in the quarter to 28.88 percent from 28.06 percent in the last year period.
chairman and chief executive officer Jeff Bewkes said: “We had a strong third quarter, which keeps us on track to exceed our original 2016 outlook and underscores our leadership in creating and distributing the very best content. In television, HBO took home more Primetime Emmy Awards than any other network for the 15th consecutive year and Time Warner’s divisions won a total of 40 Emmys, more than any other company. CNN’s standout election coverage made it the #1 news network in primetime among adults 18-49 for the fourth consecutive quarter and Turner’s momentum doesn’t stop there. Year-to-date, TBS, TNT and Adult Swim are three of the top five ad-supported cable networks in primetime among adults 18-49. In film, Warner Bros. had a strong quarter led by Suicide Squad and has the #1 release of the fall in Sully, while anticipation is off the charts for J.K. Rowling’s Fantastic Beasts and Where to Find Them, which hits the big screen on November 18.”
Operating cash flow improves
Time Warner Inc has generated cash of $3,534 million from operating activities during the nine month period, up 17.92 percent or $537 million, when compared with the last year period.
The company has spent $999 million cash to meet investing activities during the nine month period as against cash outgo of $501 million in the last year period.
The company has spent $2,382 million cash to carry out financing activities during the nine month period as against cash outgo of $3,340 million in the last year period.
Cash and cash equivalents stood at $2,308 million as on Sep. 30, 2016, up 30.10 percent or $534 million from $1,774 million on Sep. 30, 2015.
Working capital increases sharply
Time Warner Inc has recorded an increase in the working capital over the last year. It stood at $5,725 million as at Sep. 30, 2016, up 53.24 percent or $1,989 million from $3,736 million on Sep. 30, 2015. Current ratio was at 1.76 as on Sep. 30, 2016, up from 1.44 on Sep. 30, 2015.
Days sales outstanding went down to 103 days for the quarter compared with 107 days for the same period last year.
Days inventory outstanding has decreased to 23 days for the quarter compared with 47 days for the previous year period.
Debt moves up
Time Warner Inc has witnessed an increase in total debt over the last one year. It stood at $24,471 million as on Sep. 30, 2016, up 6.73 percent or $1,544 million from $22,927 million on Sep. 30, 2015. Total debt was 37.21 percent of total assets as on Sep. 30, 2016, compared with 36.58 percent on Sep. 30, 2015. Debt to equity ratio was at 1.01 as on Sep. 30, 2016, up from 0.97 as on Sep. 30, 2015.
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