Earnings preview: Time Warner

Time Warner Inc. reports second-quarter earnings Wednesday. The following is a summary of key developments and analyst opinion related to the period.

The diversified media conglomerate is expected to report essentially flat earnings on slightly higher revenue. While the bottom line will make headlines, the company is also expected to provide updates on plans for its cable and AOL online units.

Time Warner has said it will spin off Time Warner Cable by the end of the year. The company sold 16 percent to shareholders already, but retained 84 percent. Management is expected to update analysts on that transaction, which needs approval from the Federal Communication Commission.

AOL has been losing revenue at a sharp rate after the company stopped charging membership fees, relying only on ad revenue. It hopes to sell part or all of the unit.

The company's Warner Brothers studios is basking in the success of "The Dark Knight," which passed $400 million in box office revenue faster than any other film. The movie opened after the close of the second quarter, and likely will hurt results in that period because of marketing costs. It did put out "Get Smart," "Speed Racer" and "Sex and the City: The Movie," in the second quarter

Time Warner also owns cable networks such as HBO and CNN, and publishes magazines like Time and Sports Illustrated.

BY THE NUMBERS: Analysts expect the company to earn 23 cents per share on revenue of $11.45 billion, according to Thomson Financial.

ANALYST TAKE: Barrington Research Associates analyst Alexander Paris expects profit of 24 cents per share on revenue of $11.33 billion.

WHAT'S AHEAD: Time Warner has been trying to unload its AOL online unit and is reportedly close to splitting AOL's Web properties from its dial-up access business. That would clear the way for an Internet service provider like EarthLink to take the dial-up, leaving the likes of Microsoft Corp. and Yahoo Inc. to bid on the content-producing Web properties.

STOCK PERFORMANCE: Time Warner shares added 5.6 percent in the quarter to finish June at $14.80. The stock has been as high as $19.42 in the past year.