NYSE:TWX) quarterly profit beat forecasts on Wednesday, thanks to its cable networks and the final episode of its Harry Potter movie franchise, Reuters reported.

Time Warner also reported a better-than-anticipated profit forecast, a new share buyback authorization and an increase in its quarterly dividend. The company’s stock climbed almost 3 percent at first, then went back down as European macroeconomic issues rubbed out early broad market gains, said Reuters.

A rise in carriage fees at its cable networks helped push an increase in cash flow for the New York-based company, which owns CNN, Turner and Warner Bros., the report said. Other media conglomerates, including Walt Disney (NYSE:DIS) and Viacom (NYSE:VIA) (NYSE:VIAB) have so far reported similar growth boosted by strong cable performance.

“Time Warner’s cranking along well,” said Miller Tabak analyst David Joyce, according to Reuters. “They have momentum in ratings and ad revenue and they continue to invest well in programming.”

Net profit was up to $773 million, or 76 cents a share, in the fourth quarter compared with $769 million, or 68 cents a share, the previous year.

Earnings were 94 cents a share on an adjusted basis, ahead of an average analysts’ forecast of 87 cents a share, according to Thomson Reuters I/B/E/S.

Here’s how shares of Time Warner reacted to earnings:

Time Warner Inc. (NYSE:TWX): TWX shares recently traded at $38.11, up $0.01, or 0.03%. They have traded in a 52-week range of $27.62 to $38.62. Volume today was 14,090,865 shares versus a 3-month average volume of 6,406,130 shares. The company’s trailing P/E is 14.47, while trailing earnings are $2.63 per share.

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