Time Warner reports impressive earnings beat as it prepares for AT&T merger

Entertainment corporation Time Warner posted better-than-expected results for its fiscal third quarter on Wednesday.

The owner of the Warner Bros. studio and Turner cable networks reported earnings of $1.83 per share and revenue of $7.2bn.

Wall Street had expected the company, which is currently the subject of a controversial acquisition bid from communications giant AT&T, to earn $1.37 per share on revenue of $6.98bn.

Shares in Time Warner were down 0.14% to $88.13 as of 1353 GMT on the back of the news.

The AT&T deal is expected to close in early-2017, but is certain to face a high degree of scrutiny from antitrust regulators in the US.

"We had a strong third quarter, which keeps us on track to exceed our original 2016 outlook and underscores our leadership in creating and distributing the very best content," said CEO Jeff Bewkes in a statement accompanying the quarterly results.

The company cited successes from a number of big movie titles, including the likes of summer blockbuster "Suicide Squad".

Bewkes also commented on the AT&T deal, describing it as the "natural next step" for the two companies.

"Combining with AT&T is the natural next step in the evolution of our business and allows us to significantly accelerate our most important strategies."