Media conglomerate Time Warner (TWX) saw profits fall 38% last quarter as the company continued to suffer from lower advertising revenues, especially in its print business.

The owner of Time Magazine, People and CNN said it earned a profit of $661 million, or 55 cents a share, dropping from $1.07 billion, or 89 cents a share, from the same period a year ago, as revenue slipped 6% to $7.14 billion.

Excluding one-time items, earnings from continuing operations fell from 65 cents a share to 61 cents a share.

While the company did report a decrease in both profits and revenue, the results topped the 53 cents a share on $7.08 billion in revenue that analysts were expecting.

“Time Warner is firmly on track to post solid results this year in spite of the tough economic environment,” Time Warner Chairman and CEO Jeff Bewkes said in a statement.

Time Warner’s revenue decline came primarily in the company’s publishing business, which saw revenues fall 18% to $914 million as advertising revenues dropped 13% and subscription revenues fell 24%.

In its broadcast division, which includes CNN and HBO, revenues rose 5% to $2.9 billion as subscription revenues rose 9% and content revenues fell 12%.

Despite the revenue declines, the company was positive on future results, raising its full-year earnings target to at least $2.05 a share. The company previously forecast $1.98 a share back in April.

The company also said it is on track to spin off its AOL division into a separate publicly-traded company by the end of the year.