Time Warner profits up on advertising

Time Warner de-merged from AOL last year

Media group Time Warner has reported a 10% rise in profits, thanks to increasing advertising revenues and strong DVD sales.

The group behind Warner Brothers and HBO said net profits for the first three months of the year totalled $725m (£479m).

Strong sales of its Sherlock Holmes film DVDs helped earnings, the company said, with revenues up 5% on last year.

Advertising sales through its TV network division were also up.

The rising in advertising revenues will be particularly welcomed, as media companies suffered a big drop in advertising income during the global recession.

The results have also helped justify the company's decision to demerge from internet company AOL last year.