For the first time, Time Warner has broken out HBO’s revenue and profit in its quarterly earnings. At $1.26 billion, a 6% rise from the fourth quarter in 2012, HBO’s revenue is in line with Netflix’s $1.18 billion, which rose 24% year over year.
Time Warner chairman and CEO Jeff Bewkes said Wednesday that Turner, HBO, and Warner Bros. all saw record profits in the fourth quarter. While HBO’s revenue was on par with Netflix’s, the premium network outperformed when it came to profit. HBO saw net income of $413 million, a decline from the $430 million posted the same period the year prior. In the year ended Dec. 31, it reaped $1.79 billion in profit, up from $1.55 billion in 2012. Netflix, on the other hand, reported a profit of $8 million in the fourth quarter and $112 million in 2013. It’ll be a while before Netflix is able to catch up. Earlier this week, the streaming company announced that it would raise $500 million in debt financing to help fund its investments in international expansion and original content.