Time Warner (NYSE:TWX) posted slightly higher net income of $1.1 billion, or $0.28 per diluted common share, versus last year’s $1 billion, or $0.24 per diluted common share, a 10 percent increase. As TheStreet.com noted, the company beat the Thomson Financial analyst consensus estimate of 20 cents a share. Additionally, Time Warner’s revenues rose 6 percent over the same period in 2006 to $11 billion, thanks primarily to growth in the cable segment. Aside from its quarterly results, Time Warner’s board has authorized a new $5 billion stock repurchase program. Some of the company’s Q2 segment highlights included:
— AOL: Revenues fell 38 percent – an amount of $774 million – to $1.3 billion. The decline was due to 55 percent decrease ($855 million) in subscription revenues, which was partially offset by a 16 percent rise ($73 million) in advertising revenues. Last year, AOL began its transformation from a subscription-based internet service provider to an advertising-based model. Advertising revenues benefited from growth in display and paid-search advertising on the AOL Network and its affiliates. Operating Income was up 9 percent ( a rise of $31 million) to $360 million.
— AOL had 114 million average monthly domestic unique visitors and 52 billion domestic pageviews, the company said, citing comScore Media Metrix. Time Warner added that these numbers translate into 152 average monthly pageviews per unique visitor.
— Publishing (Time Inc.): Revenues were flat at $1.3 billion, which were held back by ad declines at Southern Living at Home. Overall, advertising revenues were $6 million (although that was negated by “other revenues” declining by that same amount). Operating Income rose 13 percent ($29 million) to $256 million.
— The primary highlight in the Publishing segment was higher digital ad revenues of $19 million, led by People.com and CNNMoney.com, which was offset partially by declines in print magazine revenues.
— Networks (Turner Broadcasting & HBO): Revenues retreated a moderate 1 percent ($24 million) to $2.6 billion, reflecting an 11 percent fall-off ($98 million) in advertising. The shutting down of The WB Network