But the New York-based company is affirming its full-year projection of $1.98 per share in adjusted profit.
Time Warner, which owns the Warner Bros. movie studio, the HBO and Turner cable networks, Time Inc. magazines and the AOL Internet portal, says it earned $519 million, or 43 cents per share, in the most recent quarter. That compares with $792 million, or 66 cents per share, a year earlier.
Excluding items, the company says it would have earned 45 cents per share.
Revenue fell 9 percent to $6.81 billion.
Analysts, who typically exclude items, expected earnings of 37 cents per share on sales of $6.97 billion.