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."