Suicide Squad helps drive strong sales at Time Warner
Superhero film Suicide Squad and higher fees from pay TV providers helped drive higher-than-expected quarterly profit and sales at Time Warner.
The firm, which is in the midst of being taken over by US telecoms giant AT&T, owns Warner Brothers film studios, the cable TV channels HBO, the Cartoon Network and CNN. Revenues rose 9% to $7.2bn (£5.8bn) in the three months to the end of September, with net income of $1.47bn. AT&T is paying $85.4bn for the firm. Time Warner's shares are currently trading around $89 a share, well below the $107 a share offer price, suggesting investors are doubtful that the deal will be approved by regulators. A US Senate subcommittee responsible for competition is set to hold a hearing on the merger this month. The tie-up would combine AT&T's distribution network, which includes 130 million mobile phone customers and 25 million pay-TV subscribers, with content from the Warner Brothers film studios and the cable TV channels HBO, the Cartoon Network and CNN. There are concerns that because AT&T already owns mobile phone, broadband and cable TV networks, allowing it to control the shows as well might mean less choice for consumers and lead to higher prices. Speaking after the third quarter results, Time Warner chief executive and chairman Jeff Bewkes said the merger was "a great outcome" for shareholders and would drive "long-term value well into the future" for the firm.