Time Warner Inc. said on Wednesday that quarterly profit rose 5.2 percent as it added more digital cable, Internet and phone customers.

The company also said its board had approved the buyback of $5 billion of its stock, after essentially completing a $20 billion buyback.

The New York-based owner of AOL, the Warner Bros. movie studio and CNN said second-quarter net profit rose to $1.07 billion, or 28 cents per share, from $1.01 billion, or 24 cents per share, a year earlier.

Revenue rose 6 percent to $11 billion.

Excluding special items, earnings were 22 cents per share, beating the average Wall Street forecast of 20 cents, according to Reuters Estimates.

AOL's advertising sales rose 16 percent, falling shy of the 40 percent-plus growth the Internet division has seen in the past four quarters. AOL revenue fell 38 percent to $1.3 billion as it lost more paid Internet service subscribers.

Time Warner Chief Executive Richard Parsons said last quarter the company will continue to see AOL's ad growth rise at or above industry rates, but below 40 percent. The company plans to review the Internet unit's performance at the end of this year.

Cable services revenue rose 59 percent and operating income before depreciation and amortization rose 52 percent helped by newly acquired cable systems. But basic video subscribers fell 57,000 during the quarter, primarily from those new systems.

Time Warner Cable ended the quarter with 13.4 million basic video subscribers.

Film division revenue fell 5 percent from lower TV revenues and lower home video revenues compared with last year when its Harry Potter videos hit the market. Box office sales of Ocean's 13 and 300 partially offset the declines.

Time Warner affirmed earlier full-year financial targets of earnings per share of $1.07, including items, and percentage growth in adjusted operating income before depreciation and amortization at a mid-to-high-teen percentage rate. Excluding items, Time Warner expects full year earnings per share of 95 cents.

(Reporting by Kenneth Li)