Time Warner earnings: $1.29 per share, vs expected EPS of $1.16

Calacanis: Linear TV has won the day
Calacanis: Linear TV has won the day

Time Warner reported quarterly earnings that beat analysts' expectations but revenues that missed on Wednesday.

The company posted second-quarter earnings per share of $1.29, compared to $1.25 per a share in the year-earlier period. Revenues for the quarter came in at $6.95 billion, against the comparable year-ago figure of $7.35 billion.

Analysts polled by Thomson Reuters expected earnings of $1.16 per share on revenues of $7.05 billion.

The company increased its full-year guidance, anticipating earnings per share between $5.35 and $5.45.

Time Warner also announced a 10 percent investment in Hulu Wednesday, and Turner separately signed an agreement for all of its networks to be carried on Hulu's live-streaming services. Shares of TWX rose 3.5 percent in premarket trading.

The 5 percent revenue decrease was due to a decline at Warner Bros. and an unfavorable foreign exchange impact, the company said, but was partially offset by growth at Turner and HBO.

Jeffrey Bewkes, chairman and chief executive officer of Time Warner
Chris Kleponis | Bloomberg | Getty Images

"We had a strong first half of 2016, which puts us ahead of our original goals for the year," chairman and CEO Jeff Bewkes said in a statement. "Our performance reflects the creative excellence resulting from investments we've been making in the very best content."

At Turner, which owns CNN, Cartoon Network and TNT, revenues increased 6 percent to $3 billion thanks to an increase in subscription and advertising revenues, the company said. Ad revenue was helped by Turner's news business and the 2016 NCAA Division I Men's Basketball Championship. Turner saw a 15 percent decline in content and other revenues, due to lower domestic licensing revenues, the company said.

Home Box Office, or HBO, saw a 3 percent increase in revenue due to an uptick in subscription revenues. Meanwhile, Warner Bros.' revenues were down 19 percent because of lower video game, home entertainment and television licensing revenues.

Time Warner reported a slightly higher-than-expected uptick in revenue last quarter, as subscription revenue rose at its Turner Broadcasting unit and HBO.