Shares in media business Time Warner have fallen by over eight per cent, after the company slashed its outlook for 2016.
Investors signalled their unhappiness with the forecast, despite the company reporting revenue of $6.6bn (£4.3bn) for the three months to 30 September, a five per cent jump from the same period of last year. This included $1.4bn from HBO, the network behind popular shows such as Game of Thrones and Girls, and $3.4bn from Warner Bros.
Time Warner boss Jeff Bewkes said: “Our revenue growth was led by Warner Bros. and HBO, and illustrated how our investments in great content have been paying off in our traditional television businesses, as well as in newer areas such as videogames.”
He added that Warner Bros was the top videogames publisher in the US during the first three quarters of 2015.
However, the group also said it expects to post earnings per share (EPS) of around $5.25 for 2016, having previously forecast 2016 EPS as being closer to $5.60.
The firm said a potential increase in investment, which it said could run into the "hundreds of millions”, would hit earnings. Time Warner is facing increasing competition from the likes of Netflix, which may necessitate extra spending in the future.