Despite a continued momentum from AOL ad sales, Time Warner (NYSE: TWX) reported 1Q earnings fell 20 percent to $1.2 billion, or 31 cents per share, from $1.5 billion, or 32 cents per share, a year earlier. Meanwhile, revenue was up 9 percent to $11.2 billion, which the company attributed to gains in its cable category. Overall:

-- AOL revenues fell 25 percent, due to a 43 percent decrease in subscription revenues. These losses were offset by AOL’s 40 percent increase in ad revenue, which came in at $157 million in 1Q.
-- AOL’s operating income rose from $265 million to $1.1 billion, which was largely attributed to the pretax gain of approximately $670 million on the sale of AOL’s internet access business in Germany in February.
-- Looking monthly U.S. uniques, AOL had 111 million average monthly visitors and 44 billion pageviews, said Time Warner, citing comScore figures.
-- Time Warner Cable revenues rose 61 percent, coming in at $3.9 billion in 1Q06. Operating income in that segment grew 28 percent to $579 million.
-- Revenues for for its film division, which includes Warner Bros. Entertainment and New Line Cinema, fell 1 percent to $2.7 billion, calling the quarter “difficult” in the area of worldwide home video revenue. Operating Income decreased 34 percent to $243 million.
-- Publishing revenues for Time Inc. saw a 1 percent drop to $1 billion. Operating income fell 49 percent to $38 million.
-- Turner Broadcasting and HBO combined network revenues of $2.4 billion were flat compared to 1Q06, reflecting a 6 percent increase in subscription revenues and a 3 percent increase in content revenues, while advertising revenues declined by 12 percent. More to come. Earnings release (PDF) | Webcast