The Wall Street Journal (subscription required) reports that Time Warner’s (parent company of AOL) “third-quarter profit nearly tripled, helped by gains from asset sales
and strong results in cable services. The company also reaffirmed its
2006 full-year business outlook.”
Dick Parsons, Chairman and CEO, was quoted as to saying “This quarter’s results position the company to meet all of our
full-year financial objectives.” He continued with this tidbit on AOL specifically, “We’re particularly encouraged by AOL’s early progress in
making the transition to an advertising-supported business.”
The company also mentioned that it expects growth at a rate in the “low double-digits” for operating
income. Net income jumped to $2.32 billion from $853 million for the same period last year. The increase is mostly due to growth in the cable and networks segments. Apparently, cable has been a good thing for Time Warner. Its bundling of
Internet, phone, and television services has met with strong demand.
Not much was given in the way of what exactly was meant by “AOL’s early progress,” but the overall message has analysts and investors praising the ad-supported model.