Time Warner Inc. also kept its outlook for the year. It said adjusted per-share profit will grow by a low double-digit percentage from $2.89 last year. The company said "Argo" was doing well in theaters this quarter, and it should get a boost from the long-awaited launch of "The Hobbit" movies next month.
On a conference call with analysts, CEO Jeff Bewkes identified challenges. He said the CNN news business benefited from coverage of the elections and Superstorm Sandy, but it needed ways to do well when there isn't breaking news. The Time Inc. magazine properties also face challenges transitioning to a digital world. Bewkes said the company will continue to control costs while trying to tap the magazines' brand recognition and access to consumer data to develop new products and advertising opportunities.
After the release came out in the morning, Time Warner's stock increased $1.80, or 4.2 percent, to close Wednesday at $44.91. Its shares are near their 52-week high of $46.59 on Oct. 9. Its shares traded as low as $32.09 last November.