AOL A Drag On Time Warner Earnings
November 6, 2008 at 5:24 AM (PT)
TIME WARNER turned in mixed third-quarter results yesterday, with strength at its cable, TV networks and film-entertainment units offset by continued weakness at its publishing and AOL operations, which includes AOL RADIO. THE NEW YORK POST reports the conglomerate's results proved true the industry axiom that flat is the new up: Third-quarter revenue came in at $11.7 billion, while net earnings per share totaled 30 cents -- nearly identical to year-ago figures.
AOL's continued deterioration remained the biggest issue for TIME WARNER. Revenue at the unit totaled $1 billion, down 17% from a year ago. More distressing, however, is that advertising revenue declined, whereas in the past it simply didn't grow as dramatically as its competitors. AOL's third-quarter ad revenue fell 6%, vs. year-earlier growth of 2%.