(RTTNews) - Media and entertainment giant Time Warner Inc. (TWX: News ) Wednesday posted a lower profit for the third quarter, reflecting weak revenues at the AOL, Publishing and Filmed Entertainment segments that more than offset growth at the Networks segment. Further, the company hiked its full-year earnings forecast, citing a better-than-expected performance at its Content Group.

Q3 Results

The New York-based company's third-quarter net income attributable to Time Warner Inc. shareholders was $661 million or $0.55 per share, compared to $1.07 billion or $0.89 per share in the year-ago quarter.

Income from continuing operations attributable to Time Warner Inc. shareholders totaled $662 million or $0.55 per share, down from $761 million or $0.63 per share in the same quarter of last year.

Adjusted income from continuing operations declined to $724 million from $784 million in the prior-year quarter. Adjusted per share earnings was $0.61, down from $0.65 earned in the comparable quarter of last year.

On average, 21 analysts polled by Thomson Reuters expected the company to post earnings of $0.53 per share. Analysts' estimates typically exclude special items.

Total revenues for the latest quarter dropped 6% to $7.14 billion from the previous year's revenue of $7.58 billion. Seventeen Wall Street analysts had a consensus revenue estimate of $7.08 billion for the quarter.
Lower revenues at the AOL, Publishing and Filmed Entertainment segments more than offset growth at the Networks segment. For the Content Group, which consists of the Networks, Filmed Entertainment, Publishing and Corporate segments, revenues were down 3%, and operating income declined 2%.

Jeff Bewkes, Chairman and Chief Executive Officer of Time Warner, said, "Time Warner is firmly on track to post solid results this year in spite of the tough economic environment. Driven by the better-than-expected performance at our Content Group this quarter, we're raising our 2009 business outlook."

Further, the company said it still expects to spin off AOL by the end of the year, and invest more in its businesses and increase its direct returns to stockholders this year, while significantly strengthening the company's balance sheet.

Networks (Turner Broadcasting & HBO)

Revenues at the company's Networks' segment advanced to $2.87 billion from $2.73 billion a year ago, with 9% growth in Subscription revenues, partially offset by a 12% decline in Content revenues and a 1% decrease in Advertising revenues. Operating income grew 3% to $938 million from $909 million last year, largely driven by higher adjusted OIBDA, partly offset by a $52 million non-cash impairment of intangible assets related to Turner's interest in a general entertainment network in India and higher depreciation and amortization expenses.

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