Despite the difficulties being experienced by the online unit, the world's largest media company said it was on course to meet full-year revenue and cash-flow expectations.
The fortunes of America Online have disappointed the industry as its growth has slowed and its influence diminished.
Last month, AOL Time Warner admitted that $49m (拢32m) was wrongly attributed to advertising revenues for America Online, despite previous assurances that its accountancy methods were above board.
The company said it identified three transactions totalling $49m, which took place over a period of six quarters, that it said "may have been inappropriately recognised as advertising and commerce revenues".
In addition to weak advertising growth, AOL has been hit by the number of users who are migrating to its high-speed broadband internet access service.
AOL Time Warner recently installed former USA Networks executive Jon Miller to replace Bob Pittman. Pittman was axed after he failed to turn the performance of the online giant around.
Miller will be one of the first AOL outsiders to run the company. In the past, it has been headed by a closely knit group of long-time staffers.
The company is predicting that America Online's full-year advertising and commerce revenue is set to hit $1.7bn. However, this figure is stated with the proviso that it could come in 5% lower. Earnings before interest, taxes, depreciation and amortisation are reported to be within a range of $1.7bn-$1.8bn.
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