Wednesday April 24, 4:25 pm Eastern Time
Reuters Business
AOL Time Warner Posts Massive Net Loss
NEW YORK (Reuters) - AOL Time Warner Inc. (NYSE:AOL - news), the world's
largest Internet and media company, on Wednesday posted a massive net loss after taking
the largest charge in corporate history.
The company posted a first quarter net loss of $54.2 billion, or $12.25 a basic share -- among the largest in corporate history
-- compared with a net loss of $1.37 billion, or 31 cents a share, a year earlier.
It took a previously announced $54 billion charge to write off goodwill in line with accounting changes to reflect the sharp
decline in the value of its $106.2 billion purchase of Time Warner in 2000.
The company, home to CNN, People magazine, and television shows like ``The Sopranos,'' said its earnings before interest,
taxes, depreciation and amortization (EBITDA) rose 3 percent to $2.05 billion.
Revenue grew 4 percent to $9.8 billion with strength in its cable systems and film business, which had recent hits including
``Lord of the Rings,'' offset by weakness in its AOL Internet and music businesses.
Year-ago results were reported on a pro forma basis to include the AOL Europe venture and the company's recent purchase
of UK publishing company IPC.
