It is a sign of the times when Time Warner (NYSE:TWX) CEO Dick Parsons says that he is "very pleased" with the company's first-quarter results. When net revenues inching forward just 1% versus the year-ago period is welcome news, it makes you wonder what bad news looks like. Discarding the rose-colored lens, let's peer into the media and entertainment behemoth's latest sales figures.

At least there are some aspects in its latest quarterly performance that are pleasing to the eye. Addressing the good news first, Time Warner indicated that the first quarter's strength came from its Cable and Networks segment. The company achieved solid growth in both basic and digital subscribers, as well as high-speed data and digital phone services. The 16% increase in subscription revenues was offset by a 2% decline in advertising revenues, leading to sales growth in the Cable segment of 14.9%.

Its Networks division grew revenues by 3.3% from higher subscription and advertising sales. The increased subscriber revenue, however, was due primarily to price increases. That said, the company did point to its Sopranos series as one reason HBO viewership remains strong.

And that is where the good news ends. Time Warner's AOL continues to be hammered, with revenues declining 7.2%. While advertising revenue growth was very strong, increasing 26% year over year, this was more than offset by the 13% decline in subscription sales.

Additionally, sales from its Filmed Entertainment group decreased 8%, driven by weaknesses in multiple fronts, including Warner Bros., worldwide theatrical revenue, lower television revenue from theatrical product, and declines in home video revenue. Difficult comparisons are a part of the problem, as last year's results benefited from blockbusters such as Million Dollar Baby and Ocean's Twelve. And in Publishing, its last major product segment, revenues were flat year over year. In this category, increased advertising sales were countered by lower subscription revenues.

As an individual investor, determining the best course of action with a massive media company such as this is no easy task. While there are some very pleasing aspects in the latest performance, you have to be wearing more than rose-tinted glasses to see the beauty in a segment like AOL. What may be most comforting is that Time Warner has recently repurchased 460 million shares at roughly $8 billion. In 2006 and through 2007 it will buy back $15 billion worth of its stock. If this is a sign that management believes company shares are undervalued at this level, then this may be reason enough to take a closer look at Time Warner.

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Fool contributor Jeremy MacNealy does not own shares of any companies mentioned.