Time Warner Inc. operates as a media and entertainment company in the United States and internationally. It operates through three segments: Turner, Home Box Office, and Warner Bros. The Turner segment owns and operates a portfolio of cable television networks and related properties that offer entertainment, sports, kids, and news programming on television and digital platforms for consumers. It operates approximately 165 channels in 200 countries. The Turner networks and related properties include TNT, TBS, Adult Swim, truTV, Turner Classic Movies, Turner Sports, Cartoon Network, Boomerang, CNN, and HLN. This segment also manages and operates various digital media properties primarily consisting of bleacherreport.com, cartoonnetwork.com, CNN Go, CNN.com, CNNMoney.com, NBA.com, NBA Digital, and NCAA.com; and licenses original programming to subscription-video-on-demand (SVOD) services, and its brands and characters for consumer products. This segment serves cable system operators, satellite service distributors, telephone companies, and other distributors. The Home Box Office segment provides premium pay and basic tier television services comprising HBO and Cinemax; and sells its original programming through DVDs, Blu-ray discs, and electronic sell-through, as well as licenses home entertainment and content to international television networks and SVOD services. As of December 31, 2014, this segment had approximately 46 million subscribers worldwide. The Warner Bros. segment produces, distributes, and licenses television programming and feature films; distributes digital and physical home entertainment products; and produces and distributes videogames, as well as licenses consumer products and brands. Time Warner Inc. is headquartered in New York, New York.
(Summary) (Company) (Chart)
10 October 2015
1yr Target $92.37
Payout Ratio 33.25%
1yr Cap Gain 26.37%
1yr Tot Return 28.28%
EPS (ttm) $4.21
EPS next yr $5.70
EPS next 5yr 17.73%
1yr Potential $101.06
Market Cap $59.61 Bil
Revenues $28.24 Bil
Earnings $3.58 Bil
Profit Margin 12.67%
1yr EarnGR 10.71%
3yr EarnGR 16.81%
5yr EarnGR 15.95%
1yr DivGR 13.63%
3yr DivGR 11.45%
5yr DivGR 19.63%
Quick Ratio 1.30
Current Ratio 1.50
The Three Operating Divisions of Time Warner
HBO offers the subscription video-on-demand products HBO On Demand and Cinemax On Demand, as well as HBO GO and MAX GO, HD feeds and multiplex channels. On April 7, HBO NOW, the network’s standalone premium streaming service, began providing instant access to the company's programming. Internationally, HBO branded television networks, along with the subscription video-on-demand products HBO On Demand and HBO GO, bring HBO services to over 60 countries. HBO and Cinemax programming is sold into over 150 countries worldwide.
HBO's original productions continue to provide some of the most innovative and critically acclaimed programming on television. Following a stellar awards year in 2014, HBO opened 2015 with a Golden Globe Award for Best Performance By a Supporting Actor in a Miniseries or Motion Picture Made for TV (Matt Bomer – The Normal Heart) and two Academy Awards for Best Documentary Feature (Citizenfour) and Best Documentary Short (Crisis Hotline: Veterans Press 1). HBO also earned three George Foster Peabody Awards for Last Week Tonight with John Oliver and the documentaries Mr. Dynamite: The Rise of James Brown and The Newburgh Sting, while CINEMAX earned a George Foster Peabody Awards for The Knick.
Among HBO’s top programming awards for 2014 are 19 Primetime Emmy Awards, the most of any network for the 13th year in a row, with True Detective leading HBO programming with five awards, while Game of Thrones received four awards and The Normal Heart received two awards. HBO also received two Golden Globe Awards, tied for the most of any television network in 2014 for Behind the Candelabra – Best Mini-Series or Motion Picture Made for Television and Best Performance by an Actor in a Mini-Series or Motion Picture Made for Television (Michael Douglas); three George Foster Peabody Awards for the documentaries Life According to Sam, Mea Maxima Culpa: Silence in the House of God and Six by Sondheim; two News & Documentary Emmy Awards including The Crash Reel in the Outstanding Informational Programming – Long-form category; and three Sports Emmy Awards including Outstanding Sports News Anthology for Real Sports with Bryant Gumbel.
Among HBO favorite series are Emmy®, Golden Globe and Peabody-winning Game of Thrones, The Leftovers and True Detective; hit comedies: Girls, Looking, Silicon Valley, Doll & Em and Emmy® winner Veep; Real Time with Bill Maher, Last Week Tonight with John Oliver and the news magazine show VICE; and Emmy® winner Real Sports with Bryant Gumbel. Project Greenlight, the documentary series chronicling the search for a first-time director and exploring the filmmaking process, will also return to HBO this year for a new season.
HBO Films and HBO Miniseries' slate of dramas for 2015 will include Bessie, Nightingale, and the HBO Miniseries/BBC adaptation of J.K. Rowling’s global bestseller The Casual Vacancy. Featured HBO Documentary Films for 2015 include: Oscar winner®Citizenfour, The Jinx: The Life And Deaths Of Robert Durst, Going Clear: Scientology And The Prison Of Belief, Kurt Cobain: Montage Of Heck, and the documentary Sinatra: All Or Nothing At All. Strike Back returns to Cinemax for its fourth and final season and The Knick will return to Cinemax a ten-episode second season.
On the technology side, HBO continues to build on the latest innovations and content distribution platforms, with the launch of HBO NOW, HBO’s new stand-alone premium streaming service that provides instant access to every episode of every season of the best of HBO’s award-winning original programming, more of the biggest and latest Hollywood hit movies, original HBO Films, groundbreaking documentaries, sports and comedy and music specials.
HBO also continues to bring its programming libraries online though its brand extensions HBO GO and MAX GO, which are also available on iPad®, iPhone®, iPod touch®, Kindle Fire, select Android™ devices and platforms such as Apple TV®, Google Chromecast, Xbox 360®, Samsung® Smart TVs, Roku® and PlayStation®3.
Turner owns and operates some of the leading cable television networks and related properties in the world, including CNN, HLN, TNT, TBS, Cartoon Network, Turner Classic Movies, Adult Swim, truTV and Turner Sports. In addition to its cable networks, Turner manages digital sports, including bleacherreport.com, NBA.com, NCAA.com, and PGA.com.
TBS is the #1 entertainment network on basic cable in primetime delivery of adults 18-49. Television’s “very funny” network features hit series The Big Bang Theory, basic cable’s #1 comedy with adults 18-49, and is home to the Emmy®-nominated late-night hit CONAN, starring Conan O’Brien.
TNT is basic cable’s #1 network in primetime delivery of total viewers. The powerhouse lineup includes three of basic cable’s top original series: The Last Ship, Major Crimes and Rizzoli & Isles and popular original dramas Legend, Murder in the First and Perception.
Adult Swim continues to claim the #1 spot in total day delivery of adults 18-24, 18-34 and 18-49 and men 18-24 and 18-34. The late-night lineup includes #1 ranked original animated series Mr. Picklesand Squidbillies and Emmy®-award-winning original series Robot Chicken and Children’s Hospital. Adult Swim programming claims more top telecasts than any other basic cable network with 22 of the top 50 telecasts among adults 18-34 and 14 of the top 50 with men 18-34.
Cartoon Network’s offering of #1 rated original animation series includes Adventure Time, Teen Titans GO!, Steven Universe, The Amazing World of Gumball and Uncle Grandpa. Cartoon Network is television’s #1 destination for young audiences in early prime and claims 49 of basic cable’s top 50 telecasts for young boys.
truTV’s audience of young men and young adults continues to grow with the success of original high-stakes and action-packed ‘actuality’ programming. truTV's line-up features original seriesFriends of the People, The Carbornaro Effect and the #1 rated series Impractical Jokers.
CNN, the original 24-hour news network, delivers the most comprehensive, nonpartisan and breaking news and analysis to global audiences across all platforms, as well as special programming, documentaries and original series. Signature programs include Anderson Cooper 360, Erin Burnett: Outfront, Somebody’s Gotta Do It, This Is Life with Lisa Ling and the Emmy® Award winning Anthony Bourdain: Parts Unknown.
HLN, the “news and views” network, brings viewers breaking news and in-depth coverage all day, every day. HLN original series include Morning Express with Robin Meade, Nancy Grace and Dr. Drew On Call.
In 2014, Warner Bros. Pictures grossed $4.73 billion in global box office ($1.56 billion domestic, $3.17 international), marking the sixth time the Studio has crossed the $4 billion in worldwide box office. The year was also the second time the Studio surpassed the $3 billion mark internationally, and the 14th consecutive year that both the domestic and international divisions crossed the billion-dollar mark—milestone no other studio has achieved. For the 14th consecutive year, Warner Bros. Home Entertainment was, once again, the industry’s leader, with 17 percent market share, and was number one in the overall sell-through and electronic sell-through categories. Warner Bros. Television Groups’ WBTV, Warner Horizon Television, Telepictures Productions and Warner Bros. Animation continued to produce television’s most popular and successful series for the broadcast, cable, pay and digital marketplaces, producing more than 60 series in the 2014-15 season. WBTVG and Warner Bros. Home Entertainment continued to be category leaders, working across all platforms and outlets, and remain trendsetters in the digital realm with video-on-demand, branded channels, original content, apps, anti-piracy technology and broadband and wireless destinations.
Warner Bros. Pictures Group produces and globally distributes a wide-ranging slate of some 18-24 films each year, employing a business paradigm that mitigates risk while maximizing productivity and capital. Warner Bros. Pictures either fully finances or co-finances the films it produces and maintains worldwide distribution rights. It also monetizes its distribution and marketing operations by distributing films that are totally financed and produced by others. The Warner Bros. Television Group oversees and grows the entire portfolio of Warner Bros.’ television businesses, including worldwide production, traditional and digital distribution, and broadcasting.
In the traditional TV arena, WBTVG produces primetime, first-run, cable and animated series, with more than 60 series on the air during the 2014-15 television season. WBTVG is the only studio to have at least one series on each of the five broadcast networks. In fact, Warner Bros. has at least three series on every network, and Warner Bros. is the only studio to have at least one new series on each of the five broadcast networks.
The cornerstone of WBTVG is Warner Bros. Television, one of the industry’s leading suppliers of network programming, as well as a major producer for cable. WBTV’s returning programs for 2014-15 are 2 Broke Girls, The 100, Arrow, The Big Bang Theory, The Following, Hart of Dixie, The Leftovers, Major Crimes, Mom, The Mentalist, The Middle, Mike & Molly, Nikita, The Originals, Person of Interest, Shameless, Supernatural, Two and a Half Men, Undateable, The Vampire Diaries, Childrens Hospital andNewsreaders. New series include, The Flash, Forever, Gotham, iZombie, Mysteries of Laura, One Big Happy, and Stalker.
WBTVG also includes:
- Warner Horizon Television, producer of scripted cable programs such as, Ground Floor, Longmire, The Lottery, Pretty Little Liars, Rizzoli & Isles and Sullivan & Son, as well reality series for network and cable such as The Bachelor, The Bachelorette, and The Voice,among others;
- Telepictures Productions, with first-run syndicated programming such as The Ellen DeGeneres Show, Extra, Judge Mathis, The People’s Court, The Real, TMZ, TMZ Hollywood Sports and TMZ Live;
- Warner Bros. Animation, producers of Be Cool Scooby-Doo!, Mike Tyson Mysteries and Wabbit;
- Blue Ribbon Content, a digital shortform series production unit.
The rapidly evolving marketplace for digital distribution is one of Warner Bros. Entertainment's greatest strategic opportunities. As the ways consumers access, purchase and enjoy Warner Bros.' content continue to change, Warner Bros. Home Entertainment, which includes the home video, online, wireless, video games and digital distribution businesses, is focused on protecting and maximizing the value of the studio's content while fully harnessing the benefits of emerging technologies.
Warner Bros. Entertainment's success at the box office and on TV contributed to its number one share in the domestic home video business for the 14th consecutive year. Warner Home Video commands the largest distribution infrastructure in the global video marketplace and is the number one company domestically in total physical sell-through video (DVD and Blu-ray combined), theatrical catalog, TV on DVD, non-theatrical family and animation, Blu-ray and VOD. WHV has been the number one studio in DVD sales for 18 consecutive years and in Blu-ray since its inception, and is the industry's leading studio in these sales internationally. WBHE is a change-leader in the home entertainment arena and a driving force behind the access technology UltraViolet, designed to reinvigorate consumer ownership of both packaged media and digital content.
DC Entertainment, founded in September 2009, is charged with strategically and deeply integrating the DC Comics business, brand and characters into Warner Bros. Entertainment and all its respective content and distribution businesses. DC Comics' characters appear in nearly 1,000 comic-book titles published and distributed globally each year as well as in live-action and animated series, direct-to-video releases, collectors' books, online entertainment, numerous licensing and marketing arrangements, graphic novels and feature films. Feature films based on DC properties include 2012's billion-dollar global blockbuster The Dark Knight Rises and 2013’s hit Man of Steel. In October 2014, the Studio announced from 2016 through 2020, its Warner Bros. Pictures and New Line Cinema will release a slate of at least 10 DC movies—as well as stand-alone Batman and Superman films—starting with Zack Snyder’s Batman V Superman: Dawn of Justice in March 2016.
I'm already a shareholder of Time Warner Inc so my strategy is pretty straight forward. I own it and I continue to buy additional shares on any pullbacks in the price of the stock. As always, I also use dividend reinvestment and options sales to increase the number of shares that I own. I'm also up front about my desire to own stock in just about any successful entertainment company because I believe more and more of the average household budget will be spent on entertainment in the future.
As any investor can see, this company is one of the great entertainment creators, developers, and producers. It fits well into the type of companies I like to own and the fundamentals are extremely compelling. I intend to own these (and more!) shares for as long as people want to be entertained. And that's going to be a long time!