Earnings: Time Warner Profits Up; AOL Revs Down; AOL Ad Revs Up 26 Percent

The Q1 earnings for Time Warner are out: earnings are up to $1.5 billion from $915 million a year ago. Revenues rose 1% over the same period in 2005 to $10.5 billion, led by growth at the cable and networks segments.
At AOL: revenues declined 7% ($152 million) to $2.0 billion, due to a 13% decrease ($236 million) in subscription revenues, offset in part by a 26% increase ($81 million) in advertising revenues. Adjusted operating income decreased 17% ($88 million) to $442 million, as lower subscription revenues more than offset higher advertising revenues, a reduction in network costs ($41 million) and an $18 million benefit associated with a change in an estimate related to employee incentive compensation.
As of March 31, the AOL service totaled 18.6 million U.S. members, a decline of 835,000 from the prior quarter and 3.1 million from the year-ago quarter. In Europe, the AOL service had 5.9 million members, a decrease of 147,000 from the previous quarter and a decline of 452,000 from last year’s quarter. Earnings release |

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