Tags: Time | Warner | brand | TWX

Time Warner Extending Its Brand to New Platforms, International

By    |   Wednesday, 25 July 2012 03:03 PM

Time Warner (TWX) is best known for its links to legacy print publishing businesses, such as Time magazine. Nevertheless, it has successfully built a major presence in online, Hollywood filmmaking, videogames, and television, all the while extending its magazine brand names into digital platforms such as tablets. Analysts, meanwhile, expect good things from its major summer movie releases, as well from international growth.

Time Warner is a media and entertainment company with three segments: networks, consisting principally of television networks and premium pay and basic tier television services that provide programming; filmed entertainment, consisting principally of feature film, television, home video and videogame production and distribution; and publishing, consisting principally of magazine publishing.

The networks include the Turner Broadcasting System, including channels such as CNN, HLN, TBS, TNT, Cartoon Network, truTV, Turner Classic Movies and Boomerang. Premium pay television services including HBO and Cinemax. The film unit is Warner Bros. Entertainment Group, as well as Warner Bros. Television Group.

As of Dec. 31, 2011, Time Inc. published 21 magazines in the United States, including People, Sports Illustrated, Time, InStyle, Real Simple, Southern Living, Entertainment Weekly and Fortune and more than 70 magazines outside the United States.

“Our first quarter results put us in a great position to achieve our financial goals for the year. We grew revenue 4 percent. We grew adjusted operating income 6 percent, and we grew adjusted EPS by 16 percent. And while these results were very good, they understate the strength of the fundamentals underlying our businesses,” TWX Chairman and CEO Jeffrey Bewkes told analysts in a recent call.

Time Warner has a market cap of $36.36 billion in a sector, media, where the average company size is $9.4 billion. Its trailing 12-month P/E ratio is 13.93 and its five-year projected price-to-earnings-growth (PEG) ratio is 1.23.

Its projected earnings per share growth for the coming year is 13.75 percent, compared to a sector average of 20.53 percent.

Second half improvement

Wall Street is bullish on TWX, with buy or outperform calls from Deutsche Bank, Standard & Poor’s Equity Research, Caris & Company, JP Morgan and Goldman Sachs.

“While TWX's mixed results for the 2012 first quarter appeared to slow its momentum coming into the year, we expect a second half improvement, with potential catalysts such as a healthy ad market ahead of upfront sales for Turner (TNT, TBS, CNN); a strong film slate for the summer and holiday season (Dark Knight 2, The Hobbit, Dark Shadows, Gravity); and further upside from higher-growth international markets (e.g., Latin America),” S&P analysts wrote in early May.

Time Warner next reports on Aug. 1.

© 2019 Newsmax Finance. All rights reserved.

1Like our page
Wednesday, 25 July 2012 03:03 PM
Newsmax Media, Inc.

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved