By Kenneth Li
The media conglomerate, which owns AOL, CNN and Time Inc, forecast adjusted operating income before depreciation and amortization to rise 7 percent to 9 percent this year, which could exceed Wall Street's forecast of 7 percent growth.
Newly appointed Chief Executive Jeffrey Bewkes is widely
expected on Wednesday to discuss a plan to spin off the
company's ownership of Time Warner Cable
A deal, which would eliminate two potential partners or
buyers of AOL but raise the valuations of online advertising
assets, will redraw the Internet advertising landscape and
consolidate power between Microsoft and Google Inc
"In change lies opportunity."
Excluding special items, earnings were 29 cents a share, matching the analysts' average forecast, according to Reuters Estimates.
Revenue rose 2 percent to $12.64 billion, in line with Street forecasts.
Once the world's largest media company by market
capitalization, Time Warner has lost that title to News Corp
AOL's quarterly revenue fell 32 percent, dragged down by a loss of 740,000 subscribers, while adjusted operating profit rose 29 percent. Online advertising growth, a closely watched barometer of progress for the division's restructuring, rose 10 percent.
Time Warner said it expected 2008 earnings per share of $1.07 to $1.11 from continuing operations.
