AOL Time Warner to Restate Results

Acknowledging deeper problems at America Online than previously reported, AOL Time Warner Inc. said that it would restate eight quarters of financial results and reduce its revenue by $190 million as part of an in-house review of its troubled Internet unit, which also is the focus of federal probes.

Meanwhile, strong earnings for movies, cable TV, broadcasting and publishing helped offset a sharp advertising slowdown at America Online, enabling AOL Time Warner to eke out a third-quarter profit of $57 million, or 1 cent per share, contrasted with a loss of $997 million, or 22 cents a share, a year ago.

AOL Time Warner’s EBITDA, or earnings before interest, taxes, depreciation and amortization -- a common profit yardstick for media companies -- fell to 19 cents a share from 24 cents a share a year earlier.