The newly merged AOL Time Warner Inc. offered up its first earnings report Wednesday and also announced to the investment community several arrangements in which it will work with companies like Compaq Computer Corp., Nortel Networks Corp. and PurchasePro Inc.
At its first meeting in New York with the investment community as the merged media, AOL Time Warner officials talked about establishing strategic partnerships to bolster its and other technology companies' brands and market share. The news came after AOL Time Warner released its fourth quarter figures that showed a pro forma net loss of US$1.09 billion after charges, or $0.25 a share. AOL Time Warner officials reconfirmed guidance on Wednesday for fiscal 2001 earnings and said it expects revenue growth of up to 15 percent for the year. Looking forward, AOL Time Warner said it will establish an advertising alliance to promote networking giant Nortel on the company's online, television and print channels, the company said in a statement. Nortel will be promoted across AOL, CNNfn.com and other CNN properties. Nortel also will collaborate with AOL Time Warner to develop and market its voice services platform utilizing AOLbyPhone software and technology.
Similarly, AOL Time Warner will establish a multi-year, technology and marketing alliance with Compaq to expand the Houston-based computer maker's advertising investment in Time Warner Cable, Turner International properties and Time Inc.'s magazines. Compaq's brand, products and services will also be featured on AOL Time Warner online properties. AOL Time Warner is also expected to purchase a "broad range" of Compaq's hardware and related professional services, the company said.
Application service provider PurchasePro will expand its existing relationship with AOL to encompass the promotion of PurchasePro B2B (business-to-business) online products across a broad array of AOL Time Warner television and print brands. Real estate and travel company Cendant will expand its advertising of its major brands, like Century 21 and Avis Group Holdings Inc., on AOL Time Warner's on-air, online and offline media. Cedant has had a long relationship with AOL, the company said.
In other announcements, AOL Time Warner will rename its financial cable channel CNNfn to CNN Money. The channel will focus on personal finance and small business issues and will be available on television and online. AOL Time Warner also announced that it is moving more than 35 of its Web sites to AOL data centers to utilize the facilities network and professional personnel, the company said.
AOL Time Warner [AOL] shares traded up 2.96 percent, or US$1.61, to $55.92 a share in midmorning trading Wednesday.
AOL Time Warner, in New York, can be contacted at +1-212-484-8000 or found online at http://www.aoltimewarner.com/.