AOL Time Warner posts $1.1 Billion Loss
  01/31/2001 11:20:00am MST Albuquerque, Nm
  By Dustin D. Brand; Owner AMO

AOL Time Warner newly merged, with a loss.   America Online and Time Warner are freshly merged and now AOL Time Warner. Though just merged, a loss of $1.1 Billion in the new company wide were reported.

  Despite these wide losses, AOL posted record numbers for the AOL side of the new company. Just to be clear, AOL merged with Time Warner, and not the other way around, this means AOL basically acquired Time Warner. AOL does expect it's product line and well known brands to fuel a 15% revenue growth for AOL Time Warner in 2001.

  As the result of the recent AOL Time Warner merger, AOL reported fourth quarter and full year results for the merged company, as well as fiscal second quarter results which ended on Dec, 31, 2000.

  AOL Time Warners results yeilded a 25 cent per share loss compared to 5 cents per share a year ago, which is a 5 squared loss. However revenue at AOL rose 8 percent from the year previous. As with any merger there are merger costs. With a merger of this size, losses can be attributed to the size. The AOL Time Warner merger was completed on January 11, 2001.

  Despite these beginning losses, AOL Time Warner projects that cash earnings per share will rise 25-30%. AOL Time Warner Chief Financial Officer J. Michael Kelly said in a statement that Strong growth in subscription and advertising revenue as well as multiple revenue streams from different world famous brands, will drive the company's performance.

  The major America Online service welcomed 2.1 million new subscribers in December 2000, more than 1.2 million in the United States and 850,000 abroad -- a record, according to the company. For the year, AOL added 6.2 million members. At year's end the subscriber counter stood at 26.7 million.

  AOL.COM