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