Despite the second-quarter revenues at Time Warner dipping 8.8% to $6.8 billion, with a net income of $519 million, Jeff Bewkes, the chairman and CEO, said he was "encouraged" by the results, pointing to gains in adjusted operating income before depreciation and amortization at the Content Group. The revenue drop reflected a 34.4% fall on the year-ago period.
"Our performance reflects the diversity of our revenue streams, the appeal of our content and our continued focus on efficiency," said Bewkes.
Even against a strong theatrical slate in the filmed entertainment segment, including the summer hit The Hangover, revenues fell 9% to $2.3 billion. This was attributed to lower DVD sales and reduced TV licence fees for theatrical fare. Filmed entertainment’s operating income rose 52% to $143 million.
Turner Broadcasting and HBO delivered revenues of $3 billion, a 5% increase, with an 8% growth in subscription revenues partially offset by a 3% drop in ad revenues. Operating income at the networks was up 17% to $875 million.
At AOL revenues fell 24% to $804 million, with an operating income that fell 28%to $165 million. AOL is in the process of being separated from Time Warner.
