Media conglomerate Time Warner Inc , posted a flat first quarter profit on Wednesday, weighed down by a drop in advertising sales at its AOL Internet and Time Inc publishing units.

Net profit from continuing operations was flat at $555 million, or 46 cents a share from $548 million, or 46 cents, a year earlier.

Revenue dropped by 7 percent to $6.9 billion.

This is the first quarter the company is posting earnings since separating from its cable unit, Time Warner Cable Inc on March 12.

Time Warner warned in February that first quarter sales and profit would likely fall due to the difficult U.S. economic environment. It reaffirmed full year 2009 outlook saying its adjusted earnings per share would be flat with 2008 at $1.98.

The media company, which also owns cable networks such as CNN and HBO and Hollywood studio Warner Bros, said it has also been hurt by the fall in DVD sales.

(Reporting by Yinka Adegoke; Editing by Derek Caney)