Time Warner posts flat third-quarter performance

With $11.71 billion in revenues during the quarter, media giant's cable and network segments offset AOL's continued weakened financial performance.

Dawn Kawamoto Former Staff writer, CNET News
Dawn Kawamoto covered enterprise security and financial news relating to technology for CNET News.
Dawn Kawamoto

Time Warner posted flat revenues and an earnings dip in the third quarter, as its AOL unit continued to post a weakened performance.

The media giant generated $11.71 billion in revenues during the quarter, compared with $11.68 billion the same time last year. And its net income dropped to $1.07 billion in the quarter from $1.09 billion a year earlier.

Time Warner, which posted earnings of 30 cents a share in the quarter, beat analysts' expectations of earnings of 27 cents a share, according to Thomson Reuters.

That gave Time Warner's stock a 2.49 percent lift in early-morning trading to $11.10 a share.

Time Warner noted that it posted growth in its networks, cable, and filmed-entertainment segments, offsetting declines at its publishing and AOL units.

Revenues decreased 17 percent ($207 million) to $1.0 billion, due to a 26 percent decline ($165 million) in subscription revenues and a 6 percent decrease ($33 million) in advertising revenues.

The decline in subscription revenues reflects mainly a decrease in domestic AOL brand subscribers, related primarily to AOL's strategy to offer its e-mail and other products free of charge to Internet consumers.

Driving the decrease in advertising revenues were declines in display advertising on AOL Network sites and sales of advertising on third-party Internet sites, offset partially by an increase in paid-search advertising.

Google and AOL have an arrangement for Google to provide paid-search advertising to the media company.