Time Warner has reported a decrease in video gaming revenues YOY but saw an overall increase in sales.
Gaming companies such as Microsoft and Electronic Arts are expected to perform well due to creating some of the most anticipated video games in the industry. Time Warner is not exactly a company that one thinks of when considering a video game purchase. However, the company is a media giant, having their hand in several areas of entertainment including video gaming, movies and television. This week the company announced their earnings for the quarter and full year. The company saw a decrease in year-over-year earnings but the quarter saw an uptick in sales for video gaming.
Time Warner Earnings
The video gaming sector of Time Warner was able to see an increase in sales for the quarter by 4% with $29.3 billion produced. For the video gaming revenues YOY, the company reported a decrease for earnings from the full year ending on the 32st of December.
The Warner Bros. division of Time Warner is the segment that includes video gaming, television and movies. This overall division saw revenues falling flat at $13 billion. The movie and television revenues were up year-over-year due to such releases as Suicide Squad, Fantastic Beasts and Batman V. Superman. However, the total number of earnings was offset based on the lower sales of video games for the company.
Let Me Explain
Trying to explain what happened, Warner Bros. stated that it was tough to compare video games in the entertainment sector as the same period last year saw the release of Mortal Kombat X as well as Batman: Arkham Knight. These two titles are popular with gamers and did quite well to push sales totals up for the 2015 year. In 2016, the company had other gaming titles to release which included Lego Marvel’s Avengers, The Force Awakens, Batman: Return to Arkham and Batman: Arkham VR. However, these titles did not do as well as expected.
The lower game revenue may have negatively affected the company, but the increase in the operating income for the Warner Bros. division did help by rising 22% to a total of $1.7 billion. It was box office ticket sales plus Flixster’s sale worth $90 million that helped to cover the cost of the video game loss.
New games are expected to be released in the future by Warner Bros. that will hopefully see the next year enjoy an increase in sales in the video gaming sector. Such games include Injustice 2 plus Lego Worlds and Lego City Undercover for consoles. A new Cars 3 game is currently in development with Disney and a new game will be created for the Batman series featuring Damian Wayne.
Helping with revenue totals overall was the HBO division which earned $5.9 billion, a 5% increase from the previous year. Subscription revenue was up 5% with Westworld, Game of Thrones and Last Week Tonight bringing in subscribers.
As far as video games are concerned, Time Warner does have quality titles but there are many more companies that tend to fare far better when it comes to quarterly and yearly revenues for video game sales. Other companies are expected to turn in report earnings by today which will include Ubisoft, Activision and Nvidia, all of which will be compared to each other and Time Warner along with other providers to see who the best in the business is.