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Time Warner profits beat estimates

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image captionRevenue from HBO, which shows Game of Thrones and True Detective, contributes to about 18% of Time Warner's total revenue

Profits at Time Warner have beaten estimates as subscription fees for its cable channel HBO offset a dip in advertising sales.

The popularity of shows such as True Detective and Game of Thrones saw revenues at HBO increase 6.2% to $1.34bn (£0.88bn).

A lack of hit films at Warner Brothers studios pulled Time Warner's total revenue down 1% to $7.5bn.

The company's shares rose 1.2% to $81.75 in premarket trading.

The decline in Warner Brothers, which contributes to half of total revenue, was due to the home entertainment releases not matching up to the success of the previous year's films, such as Man of Steel and The Hangover Part III.

Time Warner declined a takeover bid from Rupert Murdoch's 21st Century Fox last year. The company is currently planning to boost growth through reducing costs and cutting jobs.

Time Warner forecast that 2015's adjusted profit from continuing operations would be $4.60 to $4.70 per share.

Analysts were expecting a profit of $4.66 per share.

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