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.
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