Time Warner on Wednesday reported flat earnings in the first quarter, as revenues in its America Online division dipped from a continued slide in subscription revenues.
Time Warner reported net income in the quarter ended March 31 of $963 million, or 20 cents a share, compared with $961 million, or 20 cents a share, the same period a year ago. Revenues increased 3 percent from a year ago to $10.5 billion.
Revenues at AOL declined 3 percent to $2.1 billion, despite a 45 percent increase in advertising revenues. The increase was offset by an 8 percent decline in subscription revenues.
AOL has struggled to hold on to subscribers as a growing number of consumers switch from dial-up to broadband services offered by cable and telephone companies. AOL plans to go into direct competition for online advertising dollars with Microsoft Corp.'s MSN and Yahoo Inc. this summer, when it launches its public entertainment portal.
Time Warner's cable revenues increased 10 percent to $2.2 billion, reflecting a 10 percent increase in subscription revenues that were driven by a 19 percent increase in revenues from its high-speed data services.
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