This story was written by Joseph Weisenthal.
Time Warner (NYSE: TWX) has announced Q1 revenue of $11.4 billion, a 2 percent increase from $11.18 billion in the year-ago period. Total operating income decline 20 percent, largely on a steep decline in op income at AOL, stemming from a gain in the year-ago quarter. At the closely-followed unit, whose fate is still very much up in the air, total revenue was $405 million, down from $542 million a year ago. The company cited a $334 million decline in subscription revenues ($90 million from the elimination of its German business) and a 1 percent increase in advertising revenue. Altogether, net income declined 35 percent to $771 million ($.21 per share) from $1.2 billion ($.31 per share).
It's got nothing new on the AOL front, but the company did confirm that it plans to affect a full separation of its Time Warner Cable (NYSE: TWC) unit, a slice of which is already publicly held. Some highlights:
-- AOL: The closely-followed unit had total revenue of $1.12 billion, down from $$1.45 billion a year ago. The company cited a $334 million decline in subscription revenues ($90 million from the elimination of its German business) and a mild 1 percent increase in advertising revenue. Op income, as noted above, fell 74 percent to $284 million.
More to come
By Joseph Weisenthal