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AOLTW sees $734 M net loss in Q2, subs up

Tue, 07/17/2001 - 8:00pm
Anne Kerven

AOL Time Warner reported a second-quarter net loss of $734 million, or 17 cents a share, but Time Warner Cable's revenue reached $1.7 billion, and subscription revenue, $1.6 billion.

AOLTW cites a 10 percent increase in subscription revenue for its overall 3 percent revenue increase over a year ago.

The company says TWC ended the quarter with 12.7 million basic cable subscribers. Its digital cable subscribers were up 182 percent over a year ago, and its Road Runner cable modem subscribers were up 146 percent in that time.

TWC's revenue was up 14 percent, year over year, to $1.7 billion, subscription revenue grew 13 percent to $1.6 billion and revenue from advertising and commerce grew 19 percent to $142 million, AOLTW reports.

Likewise, EBIDTA for TWC rose 13 percent to $777 million, thanks to increasing demand for digital video and Internet services, the company says.

Finally, AOLTW says it has upgraded 94 percent of its cable systems and reduced capital expenditures by 5 percent from a year ago.

AOLTW's net loss was $734 million, or 17 cents a share, compared with $924 million, or 22 cents a share, a year ago. Its $9.2 billion revenue for the quarter was up 3 percent over a pro forma revenue of $8.9 billion a year ago. EBITDA was up 20 percent to $2.5 billion and earnings per share were up 28 percent to 32 cents a share.

Aside from subscription jumps, CEO Jerry Levin also cited "taking advantage of cross-company synergies" for the revenue growth. Partnerships include one with Samsung Electronics, announced yesterday, and another with WorldCom Inc., announced today.

In the "multiyear, multimillion-dollar agreement," the two companies will jointly promote WorldCom brands on AOLTW's media properties.

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