AOL Time Warner earnings score big gains

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."