Time Warner 3Q Profits Drop

Time Warner Inc.’s third-quarter net earnings dropped off by more than half, the company said on Thursday.

The hits came in part because AOL had eliminated paid accounts, instead trying to make money through online advertising. Time Warner also didn’t have the boost from acquisitions and asset sales it had received a year earlier.

Net earnings totaled $1.09 billion, or 30 cents per share, down from $2.32 billion, or 57 cents per share, during the third quarter of 2006. Revenue, however, increased by 9 percent to reach $11.7 billion. Time Warner said the growth in sales came from the cable and film divisions. AOL, on the other hand, lost 38 percent in revenue.

The earnings news came a day after Time Warner said Jeff Bewkes, president and COO, would take over as CEO and chairman. Dick Parsons had announced he was stepping down.

Time Warner shares were down .06 percent during the early afternoon, trading at $18.32.

Time Warner Inc. www.timewarner.com

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