Media group Time Warner has reported better than expected first-quarter profits, boosted by a rise in new cable video, internet and phone subscribers and AOL advertising sales.
The world's largest media company said earnings fell to $1.2 billion, or 31 cents per share, from $1.5 billion, or 32 cents per share, a year earlier. Revenue rose 9% to $11.2 billion, slightly better than expected.
Excluding gains from asset sales such as AOL's German dial-up business, profit was 22 cents per share, beating Wall Street expectations of 20 cents.
The group's results benefited from double-digit profit increases at AOL and the cable services division, offset by a drop in profit at the film division.
Last summer, AOL began to provide most of its services for free to attract more online ad revenue. While its revenue fell 25%, hit by a 43% decline in subscription revenue, operating profit rose 27% and ad sales increased 40%.
Cable revenue rose 61%, with profits in the division up 54%. Time Warner's publishing revenue fell 1% and profits dropped 49%.
