• by Wayne Friedman , August 4, 2010

Improved advertising results boosted not just TV properties at Time Warner, but its magazine operations as well at Time Inc. for the second quarter.

As a result, net income grew 7% to $562 million, with revenue climbing 8% higher to $6.38 billion. The revenue results were a bit over analysts' expectations.

Advertising revenue was up 11% overall to $1.5 billion. TV networks witnessed a 14% gain to $1.0 billion, with publishing businesses 4% higher to $503 million.

Subscriptions -- television and publishing -- also improved. TV subscriptions from HBO were up 9% to $1.9 billion and publishing was 4% up to $321 million.

Film entertainment revenue witnessed an 8% hike to $5.2 billion, and a 21% growth to $480 million in operating profit, helped by strong theatrical performers "Clash of the Titans," "Sex and the City 2," "The Blind Side," "Sherlock Holmes" and the Harry Potter films, from its Warner Bros. studio unit.

Warner Bros. television sales from its shows climbed 18% to $691 million from deals including "The Closer" and other net shows.

Concerning the competition over retrans dollars from broadcast networks, Jeff Bewkes, chairman/CEO of Time Warner, said: "We do think of broadcast as competitors. [But] we still think the stronger cable networks will prosper. All our networks are must-have networks. We are kind of happy if broadcast is revitalized."

For example, Bewkes added that the Warner Bros. studio gets a benefit both ways -- first with many shows being sold to the broadcast networks and then as an after-market to cable networks, such as Time Warner's own TNT and TBS.

Bewkes also noted that growing retail outlets such as Netflix, which Time Warner sold movies to, could be a potential competitor to HBO and other networks. But he noted that HBO continues to have a strong consumer base.

Warner Bros. Interactive, Time Warner's game division, continues to have rapid growth with big margins. Revenue from the division sits at around $500 million.