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Time Warner’s slumping Filmed Networks division sees bright spot to 49% income drop in Traveller’s Tales’ family-friendly action game.

Warner Bros. Interactive Entertainment has a handful of high-potential titles due in 2011, including Mortal Kombat, F.E.A.R. 3, and Batman: Arkham City. However, even without those big-name titles, the gaming label is starting the year off on a positive note, judging from parent company Time Warner’s first-quarter earnings, which were released this week.

The Lego Star Wars franchise continues to be a hit.

For the reporting period ended March 31, Time Warner’s Filmed Entertainment division was in part propped up by higher game revenues, led by Lego Star Wars III: The Clone Wars. The Traveller’s Tales-developed game debuted on the Xbox 360, PlayStation 3, PSP, Wii, DS, 3DS, and PC on March 22, and received a lukewarm critical reception.

The bump in game sales could not fully offset Time Warner’s slumping Filmed Entertainment segment. The division saw substantial declines during the quarter, reporting operating income had fallen 49 percent to $ 158 million. Revenue was also down during the three-month period, falling 3 percent to $ 2.6 billion. The division also includes WB’s film business.

Time Warner’s Filmed Entertainment segment is a large portion of its business, but it is not the largest. Overall, the media conglomerate posted a revenue jump of 6 percent to $ 6.7 billion, led primarily by gains attributable to its booming Networks TV division. Operating income, however, slipped 13 percent to $ 1.3 billion.

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