AOL Time Warner earnings score big gains

AOL Time Warners earnings, boosted by strong revenues and considerable growth in its online and cable businesses, beat Wall Street estimates.

Media giant AOL Time Warner Wednesday reported first quarter earnings that beat Wall Street estimates, boosted by strong revenues and considerable growth in its online and cable businesses.

The company reported revenues of $9.1 billion compared to $8.3 billion from the same period a year ago. Net income per share before charges reached 23 cents, which beat Wall Street's consensus estimate of 20 cents a share.

EBITDA (earnings before interest depreciation taxes and amortization) jumped 20 percent to $2.1 billion from the previous quarter. Free cash flow reached $651 million, a 409 percent increase from the $128 million during the same period last year.

AOL Time Warner (aol) attributed much of its growth to a 9 percent increase on $3.9 billion in subscription revenues. Meanwhile, advertising reached $2.1 billion, a 10 percent increase from the previous quarter.

Including merger-related and pretax cash charges of $620 million, AOL Time Warner reported a net loss of $1.4 billion, or 31 cents a share. That compares with last year's $1.5 billion in net losses.

"We couldn't be more pleased with AOL Time Warner's performance in our first quarter as a new company," AOL Time Warner Chief Executive Gerald Levin said in a statement. "Our results met or exceeded all key operating and financial targets."


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