NEW YORK — Time Warner reported better-than-expected earnings in its fourth quarter, but a shortage of blockbusters at the box office pushed revenue lower.
Shares of the media company fell to their lowest point in more than two years Wednesday.
The New York company said that last year's "Mad Max: Fury Road" and "Creed" were no match for 2014's "The Hobbit: The Battle of the Five Armies," ''Interstellar" and "Annabelle." As a result, revenue at its Warner Bros. studio unit fell 13 percent in the three months that ended Dec. 31.
At HBO and Cinemax, revenue rose 6 percent in the quarter as more people subscribed to the cable channels or streaming service HBO Now. Revenue at Turner, which includes news network CNN and TV channel TBS, rose 2 percent on higher advertising sales.
Time Warner reported fourth-quarter profit of $857 million, or $1.06 per share, up from $718 million, or 84 cents per share, in the same quarter a year ago.
The results beat Wall Street expectations. The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of $1.01 per share.
Total revenue fell about 6 percent to $7.08 billion in the period, falling short of Street forecasts. Nine analysts surveyed by Zacks expected $7.55 billion.
For 2015, the company said profit was nearly unchanged at $3.83 billion. Annual earnings per share rose to $4.62 from $4.34. Revenue was reported as $28.12 billion.
For the current year, the company expects adjusted earnings between $5.30 per share and $5.40 per share, above the $5.25 per share that analysts expected, according to FactSet.
Shares of Time Warner Inc. fell $2.32, or 3.7 percent, to $60.89 in morning trading Wednesday. They fell as low as $55.53 earlier, the stock's lowest point since July 2013.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on TWX at http://www.zacks.com/ap/TWX
Keywords: Time Warner, Earnings Report