Time Warner’s net income tumbled to $1.09 billion this quarter, compared to $2.32 billion a year earlier, thanks to a deeply underperforming AOL division, the Wall Street Journal reports. AOL last year dropped Internet-access fees, and with them 38% of its revenue, to focus on advertising. But the company expects already-low ad growth to slow next quarter, as search revenue declines.
Time Warner’s other businesses are relatively strong. Earnings for its television networks jumped 45%, publishing earnings rose 13%, and its cable revenue climbed 24%. One of those businesses could be sold, Bloomberg says, as incoming CEO Jeff Bewkes focuses on raising share prices. “They need to show they're executing on AOL,” an analyst said, “and they're actively weighing options for the business.”