AOL Time Warner yesterday posted a whopping net loss of $54.2 billion or $12.25 per share for the first quarter of 2002.
The loss was the result of a $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 posted a net loss of $1.4 billion in the first quarter of 2001.
Revenue for the first quarter of 2002 increased 4 percent over the same period last year to $9.8 billion.
Citing strong subscriber growth in the company's AOL and cable business, the company reported that subscription revenue increased 14 percent to $4.7 billion.
Overall, AOL Timer Warner has expanded its subscriber base by 7 million to 150 million during the past year, according to a statement. The AOL service has added 5.8 million online subscribers in the past year and 1.4 million in the past quarter, bringing the total to 34.6 million.
The company said it expects revenue to grow 5 percent to 8 percent this year.