Time Warner Finds Path to Profit with Ever-Higher Cable TV Fees

Time Warner Inc., home of CNN and HBO, has found a way to cope with higher sports programming costs and a shrinking subscriber base: raise prices ever higher.

Once again in the first quarter, the media giant’s profit beat analysts’ estimates, helped by the fees Time Warner charges pay-TV providers like Comcast Corp. to carry its cable channels. The solid results are a good omen for AT&T Inc., which is seeking to acquire Time Warner by the end of the year in an $85.4 billion deal.

If regulators approve, AT&T will take over a company that’s been navigating its way ...