• by Wayne Friedman , November 8, 2007

Time Warner is still getting itself adjusted to AOL now being an advertising-supported portal Web site.

The company took a 53% hit in its third-quarter net income--falling to $1.1 billion from $2.3 billion, partly because of AOL's revenues dropping 38% to $1.2 billion.

AOL has been mounting losses due to losing dial-up subscribers as the company moves from an Internet access provider to a business supported by advertising revenue. Advertising revenue grew 13% during the period, but operating income at the division fell 24% to $295 million.

Overall, Time Warner revenues climbed 8.6% to $11.8 billion as a result of increases at cable, film entertainment and networks divisions.

Time-Warner's film entertainment division witnessed revenue soaring 33% to $3.2 billion, with operating income more than doubling to $268 million.

Big box-office revenue for the theatrical films "Harry Potter and the Order of the Phoenix," "Ocean's Thirteen," "Rush Hour 3" and "Hairspray" did the major lifting here, as well as big home video sales for "300"

Warner Bros. Television had increasing syndication licensing fees for "Two and a Half Men," "Cold Case" and "The George Lopez Show." Turner Broadcasting saw revenue rise 6% to $2.6 billion on greater subscription rates and advertising sales.

Time Warner's Time Inc. had more modest results, with revenue just about flat at $1.2 billion. Its operating profit climbed 13% to $251 million.

Spin-off Time Warner Cable--now a publicly traded company--showed off good news, with revenue soaring 25% to $4 billion because of increased so-called 'triple play' sales of digital video (and digital video recorders), broadband and telephone services. Operating income rose 24% to $681 million.

On Monday, the company said President-COO Jeff Bewkes will become chief executive officer on Jan. 1. He will succeed Dick Parsons, who will continue as chairman.