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Earnings: Time Warner Q1 Revs Up 2 Percent; AOL Falls 21 Percent; To Separate Cable Completely

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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. 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 mentioned above, fell 74 percent to $284 million. Although no plans have been officially announced, the company said last quarter that it plans to eventually eliminate the legacy subscription business.

Cable: Revenues grew 8 percent to $4.2 billion, while the video component was up 4 percent to $2.66 billion. High speed data rose 11 percent to $1 billion. Op income was up 10 percent to $636 million.

Publishing: Revs were flat at $1 billion. Advertising declined slightly, though the company said that was mainly the result of certain title eliminations including Business2.0.

Outloook: Separately the company announced that adjusted op income growth would come in at 7 to 9 percent for the year, and that it would earn $1.07-$1.11 per share. This is pretty much right in line with existing analyst expectations, so at least for now, the company isn’t calling for more overall weakening, which is good. Release.

Release | Webcast (10:30 ET)