NEW YORK: Despite a fall in first quarter net profit (partially due to taxes and litigation costs), Time Warner delivered a beefy operating surplus for the period - up 19% to $3.1 billion (€2.28bn; £1.56bn).

This was attributed to an upsurge in advertising income at AOL plus strong consumer demand for its bundled cable packages.

"We have gotten off to an excellent start and we are feeling pretty good about the rest of the year," said chairman/ceo Richard Parsons.

AOL's overall revenue fell 25% to $1.5 billion - the outcome of its strategy to allow fee-paying dial-up subscribers to migrate to its free broadband offering.

But that strategy had its upside, according to Parsons: "AOL's advertising revenue grew at or above 40% for the fourth consecutive quarter.

"And we expect AOL to keep growing their online advertising throughout the year at or above the domestic industry rate."

For full details of TW's earnings click here.

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