AOL Time Warner does better than expected

AOL Time Warner has brought some much-needed cheer to the dotcom sector by revealing better than expected results.

Jerry Levin, the company's chief executive, said the newly-merged company enjoyed an outstanding quarter.

AOL Time Warner has reported a rise in first quarter cash earnings per share to 23 cents from 19 cents a year ago, beating Wall Street consensus forecasts by 3 cents.

First quarter earnings before interest and taxes, depreciation and amortisation rose by 20% to $2.1bn, which is the equivalent of around £1.47bn.

The figures were achieved from sales up 9% at $9.1bn - £6.38bn - compared with the same period a year earlier, which was before the merger.

The company says revenue growth was driven by a 9% increase in subscription revenues to $3.9bn ( £2.74bn); a 10% increase in advertising and commerce revenues to $2.1bn (that's £1.47bn); and an 8% increase in content and other revenues to $3.2bn (which equates to £2.24bn).

Mr Levin said: "We couldn't be more pleased with AOL Time Warner's performance in our first quarter as a new company.

"Our results met or exceeded all key operating and financial targets. This outstanding quarter underscores the unique promise of AOL Time Warner, and the ability of our management team to collaborate in a focused, disciplined way. And this is just the beginning. "

Mr Levin adds: "Our businesses are working together as one, unified organisation to deliver shareholder value over the near- and long-term."