AOL Time Warner Reports $996M Third Quarter Loss

AOL Time Warner Inc. reported a pro forma net loss of $996 million, or 22 cents per share, yesterday for the third quarter ended Sept. 30, up from a loss of $902 million, or 21 cents per share a year ago.

The company noted that its third quarter loss included $134 million in merger-related expenses and $196 million in charges pertaining to the write-down of certain investments.

Total pro forma revenue for the third quarter rose 6 percent to $9.3 billion, from $8.8 billion in the same quarter in 2000. AOL Time Warner said its increased revenue was helped by a 13 percent increase in subscription revenue, which was up to $4.2 billion. Its overall subscription base grew 18 percent to more than 137 million in the third quarter.

However, while content and other revenues rose 6 percent in the third quarter to $3.2 billion, overall advertising and commerce revenue fell 5 percent to $1.9 billion.

The company's America Online Internet service added 6.7 million new subscribers in the quarter, bringing its total to 31.3 million. AOL's total revenue climbed 13 percent to $2.2 billion, from $1.9 billion a year ago. Subscription revenue for the Internet service rose 14 percent to $1.4 billion, the company said.

AOL Time Warner also said that advertising and commerce revenue at AOL increased 5 percent to $624 million, driven largely by a 7 percent increase in advertising, contract settlements and intercompany revenues.

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