AOL Time Warner posts net loss

Journal Record, The (Oklahoma City), Feb 1, 2001

NEW YORK (AP) -- AOL Time Warner, in its first combined earnings report since merging Jan. 11, posted a net loss of more than $1 billion, citing a more than half-billion dollar downward evaluation of its investment portfolio and other expenses.

Pretax earnings, nevertheless, rose 14 percent in the fourth quarter from a year ago.

The company cited strong performances at its America Online service, cable television systems and publishing operations. But earnings from music, filmed entertainment and its TV networks dipped in the quarter.

For the three months ended Dec. 31, AOL Time Warner said it lost $1.09 billion, or 25 cents a share, in contrast to a loss of $201 million, or 5 cents per share, a year ago. Both figures were calculated as if America Online and Time Warner were operating as a combined company. The company said a $579 million investment write- down combined with increased operating expenses were a drag on earnings.