EARNINGS: Time Warner Posts Strong 1Q Earnings


Time Warner Inc. reported strong first quarter revenue growth Wednesday buoyed by stellar performance at its cable operations, beating analysts expectations.

The media giant said that revenue grew 9% to $11.2 billion while net income fell 18 % to $1.2 billion due to discontinued operations and other costs.
At the majority owned Time Warner Cable, revenues jumped 61% in the quarter to $3.85 billion. The growth was based on strong demand for its digital TV products and telephone services.

 "Time Warner is off to a strong start this year. Our first quarter results put the Company firmly on track to meet all of our full-year financial objectives. Leading the quarter's performance were double-digit profit increases at both AOL and Time Warner Cable," said Chairman and Chief Executive Officer Dick Parsons.
 "AOL continued to build momentum with its advertising-focused strategy, growing its advertising revenues 40% compared to last year's first quarter. Clearly demonstrating the appeal of Time Warner Cable's bundled offerings, net subscriber additions accelerated over the previous quarter in every major service category."