AOL Time Warner Reports Losses Losses total $1.09 Billion This Quarter Byron Alley
February 1, 2001 - The largest Internet media company, and owner of the largest online service, AOL Time Warner announced net losses totalling $1.09 Billion for this past quarter. The results were reported pro-forma for the fourth quarter, in the wake of the $1.06 Billion merger of AOL and Timer Warner.
The company was hampered this past quarter by cash flow issues, as well as disappointing earnings from films and music on the Time Warner side. However, the company is seeing strong showings from the businesses previously run by AOL. Subscriber-based services, e-commerce and advertising all show promise, despite industry slow-downs.
The AOL subscription service is intended to drive the company forward. In addition to direct revenue from subscribers, AOL Time Warner announced aggressive efforts to coordinate multiple divisions, including marketing music releases by Warner Music to AOL subscribers. The advantages of the digital medium will be explored with an offering of online forums and temporary downloads of songs.
AOL Time Warner additionally announced some internal technological changes as a result of the merger, and affirmed intentions to focus on international marketing efforts.
