AOL TIME WARNER REPORTS NET LOSS OF $4.9 BILLION FOR 2001

Stock Drops to Lowest Levels Since Merger

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NEW YORK (AdAge.com) -- AOL Time Warner today announced it posted a net loss of $1.8 billion for the fourth quarter of 2001 and a net loss of $4.9
billion for full-year 2001.

The company said the losses were owing in large part to write-downs on investments across portions of its portfolio.

Significant shortfalls
For 2001, its revenues rose 6% to $38.2 billion, and its Ebitda -- earnings before interest, taxes, depreciation and amortization -- rose 18% to $9.9 billion, which represent, as the company had previously warned, significant shortfalls from its full-year goals of $40 billion in revenue and about $12 billion in Ebitda.

Nonetheless, the media giant's stock was down 39 cents to $26.31 in late-day trading, and during the day hit lows it had not seen since the company's merger a year ago.

Aggressive goals unmet
In a comment that perhaps reflected the attention the company garnered for the aggressive goals it set last year and its failure to deliver on them,

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Co-chief Operating Officer and incoming CEO Dick Parsons said the company would "shy away from overemphasizing the granularity" of its previous guidance.

Mr. Parsons did say the company was "not counting on any overall growth" in the ad economy this year.

Ad and commerce revenues down
Advertising and commerce-related revenues were down 3% for 2001 for the company last year, with a steep 14% drop in the fourth quarter.

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