In the statement, the company said it expects revenue growth for 2002 of between 5% and 8%, and earnings before tax to increase by between 8% and 12%. However, it added that in the first quarter of 2002, revenues would be "essentially flat".
The company has confirmed that it is acquiring Bertelsmann's 49% stake in AOL Europe, paying £3.7bn cash at the end of the month and a further £1bn cash in July this year.
For 2001, AOL Time Warner says it expects to report ebitda growth of around 18%, at nearly £6.9bn, with revenues up 5% to just over £26.4bn. While other media have failed to grow at the same rate, AOL Time Warner has been criticised because it has failed to meet the high forecasts made when the company was formed at the beginning of 2001. It had originally predicted revenues of £27.8bn, before revising the figure after the September 11 terrorist attacks.
The company's growth came from increased revenues from non-advertising related areas. These include the growth in subscriber numbers to America Online and the success of movies such as Harry Potter and the Philosopher's Stone and Lord of the Rings: The Fellowship of the Ring.
Outgoing CEO Gerald Levin said that the company had achieved goals in all its divisions, "despite a difficult economic environment that included the weakest advertising market in memory".
Levin also said that expansion in overseas markets would be key to the company's sustained performance. "This is particularly true in Europe, with AOL Europe and IPC Media," he said.
Shares in AOL Time Warner rose yesterday by 2.3% to close at $32.68.
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