AOL Time Warner Inc. reported a $52.4 billion net loss for the first quarter
-- the largest in U.S. corporate history.
The company also cut its cash-flow-growth projection for 2002 to 5 percent to
9 percent, from an earlier figure of 8 percent to 12 percent.
Earnings before interest, taxes, debt and amortization at Time Warner Cable
jumped 10 percent, driven in part by a 16 percent rise in subscription
Basic subscribers rose 0.8 percent, and the MSO picked up 265,000 net
digital-cable subscribers, along with 278,000 cable-modem customers.
EBITDA at AOL Time Warner's networks group -- which includes Home Box Office,
the Turner Broadcasting System Inc. cable networks and The WB Television Network
-- dropped 4 percent.
The company blamed the decrease on the drop in high-margin ad revenue;
increased programming and marketing costs; and increased newsgathering spending
at Cable News Network.
The America Online Inc. division was hit hardest, as cash flow fell 15