Time Warner’s first-quarter profit fell 9.9 percent as the media company’s film division struggled with fewer DVD releases, but the rebounding ad market fueled growth at its TV networks division.

The results beat analysts’ expectations, but the stock declined 3.3 percent, or $1.24, to $36.49, tracking the downward trend of blue-chip shares yesterday.

What’s more, the acquisition of Flixster, the social networking service for movie enthusiasts, could be fueling concerns about the company’s plans for its $3 billion cash pile.

A spokesman declined to comment on the price the company paid for Flixster, which includes Rotten Tomatoes, the film review site.

Having completed a string of restructuring moves, including the AOL and cable arm spin-offs, the New York media giant has improved its financial performance and is moving aggressively to adjust its business models to capitalize on growth in digital media.

The company has been a staunch proponent of “TV Everywhere,” a model for shifting the cable TV subscription business onto the Web.

It also recently launched mobile apps for HBO Go, a service that allows HBO subscribers to view the network’s library of shows on-demand over the Internet.

The firm’s profit of $653 million, or 59 cents a share, was down from $725 million, or 62 cents, a year earlier. Revenue rose 5.7 percent to $6.68 billion.