Time Warner- US-FOREX.US
Time Warner is hoping the magic of the movies will act as a counterweight to falling advertising revenue.Wall Street expects the company to report second-quarter earnings of 37 cents per share on Wednesday, nearly half of the 72 cents it pulled in a year ago. Since the New Year, Time Warner
‘s stock has remained relatively flat, falling 8.6%. Peers such as Walt Disney
and News Corp.
have risen 17.1% and 8.8%, respectively. CBS
meanwhile, has slipped 4.4%. The company, which recently spun off Time Warner Cable
, is expected to benefit from its big- budget movie productions. Studios like Warner Bros. and Paramount are outperforming expectations, filling the summer season with big-banner blockbusters. Warner Bros.’ Alan Horn has sought safety in big budgets during the economic downturn, opting to spend more per film, yet on fewer films. Warner Bros. angered fans when it decided almost at the last minute to push Harry Potter and the Half-Blood Prince from its original November 2008 opening date to July 15, 2009. The move will likely prove to have been very savvy.