Time Warner Posts 3Q

Time Warner posted sharply higher third-quarter earnings November 1st although some of its special items fell short of analysts’ expectations.

Company subsidiary AOL posted higher profits as it slashed marketing expenses for its dial-up services. However, revenues fell.

Time Warner had earnings of $2.3 billion. The company had $853 million earnings last year during the same period. Revenues rose 7 percent but analysts thought the percentage would be slightly higher, according to Thomson Financial.

The earnings included 23 cents per share for discontinued operations related to cable systems that Time Warner has since transferred to Comcast Corp. as part of a three-way deal with Comcast to acquire the systems of Adelphia Communications Corp.

AOL posted a 21 percent gain in profits despite a 3 percent decline in revenues as the division cut back on marketing expenses for its dial-up Internet access business, which continued to dwindle rapidly.