Time Warner Figures Slowed by AOL and Time Inc

07 November 2008

NEW YORK: Media and entertainment giant Time Warner saw its net income fall to $1.07 billion (€830m; £671m) in the third quarter from $1.09bn in the year-ago period, beating analysts' expectations, but slowed by a 6% decline in ad revenues at online unit AOL and an 8% drop at Time Inc.

Total revenue rose to $11.71bn, but TW has reduced its full-year profit forecast to between $1.04 and $1.07 per share, from a previous prediction of $1.07 to $1.11 per share.

Its cable television advertising revenues improved by 9% in Q3, with operating income also up by 21%, as networks like CNN were buoyed by coverage of the Presidential election.

Operating income at its movie unit also rose by 3%, but Time Inc's total income dropped by 35%, and AOL's display advertising figures fell by 15%. 

The group's content business (which excludes AOL and Time Warner Cable) saw adjusted profits rise by 14% in Q3.

Data sourced from Wall Street Journal Online; additional content by WARC staff