NEW YORK ( TheStreet) -- Time Warner Inc. ( TWX), owner of the HBO and TBS networks, reported first-quarter sales that missed analyst expectations as declines at the New York-based media company's film and TV entertainment units, and its publishing segment, offset growth at its networks. Sales were $6.9 billion, short of a $7.1 billion average forecast of 25 analysts in a Bloomberg survey. Shares were falling 1.3% in mid-day trading to $59.01. Net income on an adjusted basis for the first three months of the year grew to $720 million, or 75 cents a share, from $583 million, or 59 cents, for the same period a year ago, the company said. Analysts had expected earnings of 74 cents a share.
At Warner Bros., the company benefited from its new dramas Revolution and The Following, as well as HBO's Game of Thrones. Time Inc., publisher of Time, Sports Illustrated and Fortune, reported a 4.7% drop in sales to $737 million. The magazine publisher, which also said it will cut 6% of its workforce, is due to be spun-off into its own publicly traded company in a transaction expected to be completed toward the end of 2013.
For 2013, Time Warner, said in a statement it expects earnings will increase at a rate in the "low double digits" from $3.28 a share in 2012, excluding some items. The company expects to incur $60 million in expenses related to restructuring at Time Inc., its magazine business. Written by Leon Lazaroff in New York