Time Warner records $1 billion profit in Q2FY07

New York, Aug 3 (UNI) Riding on the strength of its cable TV and movie entertainment units, the world's largest media company Time Warner has posted a profit of one billion dollars for the second quarter (April-June) of FY07, despite suffering losses at its publishing and AOL wing, which is set for a revamp.

While announcing the results, the New York-based company said that from September its AOL unit would offer e-mail and other services free of cost, besides cutting down the marketing costs for its declining dial-up services in a bid to take advantage of the booming online advertising.

With these measures, the company is confident of seeing no decline in its earning for the year.

''AOL earnings would not be hit following the revamp,'' company President and Chief Operating Officer Jeff Bewkes told analysts in a conference call.

The company, however, realised that its internet access over phone lines, which was once AOL's mainstay, was a losing business.

It lost 409 million dollars during the same period a year ago.

It also recorded a three-billion dollar charge for settling shareholders' lawsuits.

The media-giant's AOL division posted a two per cent fall in revenues as it went on losing dial-up subscribers, offset partly by a 40 per cent gain in advertising. The subscription fees, constituting three-fourth of AOL revenue, slipped 11 per cent during the second quarter of the present fiscal.

Also, its cable TV business, America's second largest after Comcast Corporation, registered a 15 per cent rise in revenue. Its movie and TV business, on the other hand, saw a 10 per cent fall in revenue on fewer video sales.

Time Inc, publisher of the flagship Time magazine, Sports Illustrated, People, and Money, recorded an 11 per cent fall in profits.

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