Time Warner Profit Drops 53 Percent

NEW YORK, November 7: While revenues were up 9 percent to
$11.7 billion at Time Warner for the third quarter, led by the cable, networks
and filmed entertainment segments, profit fell 53 percent to $1.1 billion.

At AOL, revenues were down 38 percent to $1.2 billion, with
subscription revenues down 56 percent. Ad revenues, however, gained 13 percent.
The division registered an operating income of $295 million, a 24-percent
decline.

Time Warner Cable posted a 25-percent rise in revenues to $4
billion. Subscription revenues were up 25 percent to $3.8 billion, while ad
revenues gained 24 percent to $221 million. Operating income was also up 24
percent, to $681 million.

In filmed entertainment (encompassing Warner Bros. Entertainment
and New Line Cinema), titles like Harry Potter and the Order of the Phoenix and 300 helped
drive revenues to $3.2 million, a 33-percent increase. Operating income climbed
123 percent to $268 million.

The networks division, which includes Turner Broadcasting
and HBO, saw its revenues climb 6 percent to $2.6 billion, led by a 7-percent
rise in subscription revenues and a 32-percent increase in content revenues,
offsetting a 3-percent fall in ad revenues. Operating income rose 45 percent to
$751 million.

—By Mansha Daswani