Pursuits
Time Warner Drops After Posting Loss of Turner Subscribers
- Operating profit falls, stoking investors’ cord-cutting fears
- Company raises 2016 earnings forecast to $5.30 to $5.40/share
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Time Warner Inc. fell to a two-year low after its Turner cable-network division lost subscribers, adding to investors’ fears that big media companies aren’t adjusting quickly enough to a shift in viewership habits.
The shares dropped 5 percent to $60.07 at the close in New York Wednesday, putting the stock down 26 percent in the past year. A lower provision for taxes helped the media company beat analysts’ estimates for adjusted profit, but sales decreased 6 percent to $7.1 billion, trailing analysts’ $7.5 billion estimate, because of a shortfall at movie studio Warner Bros.