NEW YORK (AP) — Time Warner Inc. said Wednesday that its second-quarter net income rose 10 percent on strong results from its HBO and Turner properties.
Results topped expectations, but investors sent shares tumbling more than 12 percent on news late Tuesday that Rupert Murdoch's 21st Century Fox was abandoning its bid for Time Warner.
New York-based Time Warner, which owns TV channels like HBO and TBS as well as Warner Bros. studios, said profit increased to $850 million, or 95 cents per share, from $771 million, or 81 cents per share, in the same quarter a year earlier.
Earnings, adjusted for one-time gains and costs, were 98 cents per share. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 84 cents per share.
The company said revenue rose 3 percent to $6.79 billion from $6.61 billion in the same quarter a year ago, and missed Wall Street forecasts. Analysts expected $6.97 billion, according to Zacks.
Last year's results have been adjusted to reflect Time Inc. as discontinued operations. Time Warner spun off that business, focused on publishing, in June.
Shares fell $10.69, or 12.6 percent, to $74.50 in afternoon trading Wednesday. Time Warner shares had increased 27 percent since the beginning of the year through Tuesday.