Time Warner Profit Drops 34 Percent

NEW YORK: Second-quarter revenues at Time Warner dipped 8.8 percent to $6.8 billion, with a net income of $519 million, reflecting a 34.4-percent fall on the year-ago period.

Jeff Bewkes, the chairman and CEO, said he was "encouraged" by the results, pointing to gains in adjusted operating income before depreciation and amortization at the Content Group. "Our performance reflects the diversity of our revenue streams, the appeal of our content and our continued focus on efficiency."

Turner Broadcasting and HBO delivered revenues of $3 billion, a 5-percent increase, with an 8-percent growth in subscription revenues partially offset by a 3-percent drop in ad revenues. Operating income at the networks was up 17 percent to $875 million.

Despite a strong theatrical slate in the filmed entertainment segment, including the surprise summer hit The Hangover, revenues fell 9 percent to $2.3 billion. This was attributed to lower DVD sales and reduced TV license fees for theatrical fare. Filmed entertainment’s operating income rose 52 percent to $143 million.

At AOL, meanwhile, which is in the process of being separated from Time Warner, revenues fell 24 percent to $804 million, with an operating income that fell 28 percent to $165 million.