The new cable, Internet, and entertainment entity known as AOL Time Warner (NYSE: AOL) reported combined fourth-quarter results this morning. This is the first financial report from the two companies since they completed their merger on January 11. The fourth quarter results were presented as pro forma -- that is, as if America Online and Time Warner had been merged for the fourth quarter.
Revenues at AOL Time Warner increased to $10.23 billion from $9.46 billion. The company had a net loss of $1.09 billion, or $0.25 a share. This compares to a loss of $194 million from the previous quarter, or $0.05 a share. Earnings before interest, taxes, and amortization, or cash flow, rose 14% to $2.4 billion from $2.1 billion.
Results for AOL Time Warner were boosted by an increase in subscribers for America Online's Internet service. AOL added 2 million subscribers during the quarter. Also, the number of AOL members outside the United States surpassed the 5 million mark in the fourth quarter.
Time Warner didn't help things, though, as some of its films had disappointing results and slower advertising sales at its cable-TV networks weighed down results. Time Warner warned the Street on December 18 that its fourth-quarter cash flow would be lower than was expected because of these factors.
For 2001, AOL Time Warner forecasts revenues of $40 billion, and cash flow of $11 billion.
Revenues at AOL Time Warner increased to $10.23 billion from $9.46 billion. The company had a net loss of $1.09 billion, or $0.25 a share. This compares to a loss of $194 million from the previous quarter, or $0.05 a share. Earnings before interest, taxes, and amortization, or cash flow, rose 14% to $2.4 billion from $2.1 billion.
Results for AOL Time Warner were boosted by an increase in subscribers for America Online's Internet service. AOL added 2 million subscribers during the quarter. Also, the number of AOL members outside the United States surpassed the 5 million mark in the fourth quarter.
Time Warner didn't help things, though, as some of its films had disappointing results and slower advertising sales at its cable-TV networks weighed down results. Time Warner warned the Street on December 18 that its fourth-quarter cash flow would be lower than was expected because of these factors.
For 2001, AOL Time Warner forecasts revenues of $40 billion, and cash flow of $11 billion.
