• by Wayne Friedman , May 4, 2011

Big advertising growth from Time Warner's Turner Broadcasting helped push up revenues, but Warner Bros.' film business brought down overall company operating income results. 

With the addition of the NCAA Tournament, Turner boosted advertising revenues 31% in the first quarter versus the same period in 2010, with overall advertising revenues at Turner some 20% higher in the period. Turner Broadcasting -- now in a partnership with CBS for the NCAA event -- ran games on its TBS, TNT and truTV networks. That and other Turner TV programming pulled a $242 million improvement in advertising revenues versus the year before. Overall entertainment revenues (advertising and subscriber fees, including that of HBO) climbed 18%, or $538 million, to $3.5 billion.

The entertainment division's adjusted operating income only crept up 2% to $1.2 billion -- mostly due to higher programming costs, which rose 37% primarily from the addition of the NCAA Tournament. Actual operating income declined 3% to $1.2 billion.

The weak spot in Time Warner's picture was its Warner Bros. film unit. Revenues dropped 3% to $2.6 billion, due primarily to difficult comparisons against the theatrical and home video release slate in the year-ago period. Year-ago results included big revenues from "Sherlock Holmes" and "The Blind Side," as well as more as home video releases. On the plus side, Warner Bros. did get higher television license fees. Adjusted operating income sank 50% to $155 million.

Time Warner's publishing businesses' revenues were essentially flat at $798 million. There was a decline of 5% -- $17 million -- in subscription revenues, but an increase of 18% -- $13 million -- in other revenue areas. Advertising revenues were flat in the quarter due to the transfer of management of SI.com and Golf.com to Turner and sales of certain magazines. Without these moves, advertising revenues would have increased 4%. Operating income picked up 26% to $63 million.

Overall, Time Warner revenues grew 6% to $6.7 billion during the period. Net income was down 10% to $651 million.