AOL Time Warner has reported losses of $54.2 billion for Q1 2002. The losses the largest in corporate history, were due to a $54 billion write down in the value of Time Warner since America Online acquired the company in January 2000, at the peak of the dotcom boom.
Revenues for the quarter increased 4% over the same period in 2001 to $9.8 billion. Subscription revenues increased 14% to $4.7 billion, reflecting strong subscriber growth in the Company’s AOL and Cable businesses. Content and Other revenues were essentially flat at $3.2 billion, primarily because of robust theatrical results in the current year, offset by strong prior-year syndication sales. Advertising and Commerce revenues declined 13% to $1.8 billion, reflecting weakness in the overall advertising market and difficult comparisons against last year.
EBITDA for the quarter increased 3% to $2.05 billion, up from $1.98 billion in 2001. EBITDA margin for the first quarter of 2002 was flat at 21%, compared with the first quarter of 2001.
The company has lowered its expectations for full-year revenue growth, which it now expects to be in the range of 5%-8%. Because of ongoing weakness in its online advertising business, the company now expects full-year EBITDA growth to be in the 5%-9% range.