AOL Time Warner reported slightly better than expected results for its most recent quarter, but told investors Wednesday that it would restate prior earnings figures following an accounting review at its America Online division.
The company said it will restate its financial results for the quarters ending Sept. 30, 2000, through the quarter ending June 30, 2002. The restatement will reduce total revenues by $190 million and earnings as measured by the EBITDA metric, which excludes certain expenses, by $97 million.
AOL said the restatement followed a review of certain advertising and commerce transactions at its America Online division.
"Even though the total amount of the restatement represents a small portion of America Online's total revenues during the period, we have taken, and do take this matter very seriously," said AOL CEO Dick Parsons.
"We have devoted a significant amount of time and resources to our review and, based on the substantial work we have done to date, do not expect any further restatements from it," Parsons said.
For its latest quarter, which ended Sept. 30, AOL Time Warner said it earned revenue of $10 billion in its fiscal third quarter. Analysts surveyed by First Call had been expecting the company to post revenue of $9.9 billion, on average.
AOL (AOL) posted a loss of $55 million, or a penny a share, after taking a charge of $733 million for investment losses and $77 million for restructuring. Earnings measured by EBITDA totaled $2.2 billion.
