Time Warner posts boffo third quarter

Time Warner revenue jumped 11 percent to $7.1 billion last quarter powered by a rocking Warner Bros. and reflecting the highest growth rate since the third quarter of 2007, the media giant said Wednesday. Net profit surged to $822 million from $52 million. Studio revenue grew 19 percent to $3.3 billion led by the strong theatrical performance of ''Harry Potter and the Deathly Hallows: Part 2'' and higher television license fees from the ''The Big Bang Theory.'' The last installment of the Harry Potter franchise took in $1.3 billion at the worldwide box office, making it the third highest grossing film ever, the company said. Studio operating income jumped 162 percent to $524 million on higher revenue, lower film valuation adjustments and lower pre-release advertising expenses. The company led by Jeff Bewkes stressed its focus on experimentation with new platforms to keep the business vital. Last month, Warner Home Video released the first two movies with UltraViolet-enabled digital copies, ''Horrible Bosses'' and ''Green Lantern.'' Consumers can access these pics and others as they come up on multiple platforms through Flixster and going forward through a growing number of UltraViolet services. Other highlights during the quarter include a licensing pact with Netflix to stream previous seasons of scripted series on The CW network or that will premiere on the network through the 2014-15 season. The CW also announced a five-year licensing agreement with Hulu last week for the rights to stream in-season episodes of its programming on the Hulu Plus subscription service and Hulu's free ad-supported service. ''Our results demonstrate the success of Time Warner's focus on investing in great content that audiences love and leading the evolution of how it's delivered,'' said Bewkes. . At cable networks, Turner Broadcasting and HBO, revenue rose 7 percent to $3.2 billion. Subscription revenue rose 6 percent and advertising revenue jumped 9 percent. Operating income slipped by 4 percent on higher sports and entertainment programming and marketing costs. Highlights include TNT's ''Falling Skies,'' which the company said ranked as basic cable's highest-rated new series during the quarter. CNN viewership was up nearly 50 percent year-on-year among adults 25-54 in prime time. Time Inc. publishing, revenue was about flat at $889 million, reflecting flat subscription revenue and a 3 percent dip in advertising revenues -- partly due to the transfer of management of SI.com and Golf.com to Turner in the fourth quarter of 2010. Time Inc. operating Income fell 12 percent to $124 million on lower revenue and higher expenses, including increased paper costs. During the first nine months of 2011, Time Inc. maintained its 21.1 percent leading share of overall domestic magazine market. It also said it had repurchased $3.7 billion worth of shares year to date. Contact the Variety newsroom at news@variety.com