Time Warner profits drop

The company affirmed its full-year financial targets after revenue rose at its film, cable and networks segments. Time Warner also took legal and tax steps that make it possible to split its AOL online business and sell it in parts.

The New York-based media conglomerate said net income fell to $792 million from $1.07 billion a year ago. Revenue rose 5 per cent to $11.6 billion.

AOL remained a burden on the company's bottom line. Subscription revenue fell 29 per cent, pushing operating income down 36 per cent. AOL scrapped fees for its e-mail service in favour of an ad-supported revenue model two years ago. The service still has 8.1 million subscribe

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