Time Warner profits drop by 36%

Time Warner reported a 36% decline in Q1 profits. An Associated Press report said the world's largest media conglomerate, which owns Warner Bros, AOL, CNN and Time magazine, earned €493 million (US$771 million) in the first three months of the year, down from €765.5 million (US$1.2 billion) a year ago.

Last year's results were boosted by the sale of AOL's internet access business in Germany. The report added that the company is to spin off the rest of its cable business.

Revenues rose 2% to €7.1 billion (US$11.42 billion).

Time Warner's latest results also included restructuring charges related to consolidating its New Line Cinema movie studio into Warner Bros., the Associated Press report also said.

Time Warner had promised in February to deliver a verdict on the future of Time Warner Cable in its first quarter earnings announcement.

Investors have long pressed Time Warner to simplify its sprawling corporate structure, and the spin off of Time Warner Cable was seen by many as as highly desirable, the report said.