AOL revenues expected to rise

by Staff,, Brand Republic 17-Oct-01, 09:01

NEW YORK - AOL Time Warner's third-quarter earnings are expected to be up 6% to $9.3bn (£6.4bn) when it posts its results today.

Last year's revenue was $8.8bn (£6.1bn) for the same period. Earnings before interest, tax, depreciation and amortisation are also predicted to be up 17% from $2.1bn (£1.4bn) to $2.4bn (£1.7bn).

However, AOL derives 25% of its income from advertising and warned that it was being hit hard by the downturn in the ad market.

Last month, it warned that it expected full-year revenues and cash flow to be seriously affected by the cost of covering the terrorist attacks in the US on September 11.

At the time, the company said it expected full-year revenue growth of between 5%-7% or about $38.3bn (£26.2bn), compared with earlier targets of 12% growth or $40bn (£27.4bn).

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