AOL may be trying to take a new tack by relying more on advertising revenue and reducing its reliance on subscription fees, but ad revenue it booked years ago is being restated.
Time Warner last week restated another $584 million related to revenue booked by AOL, bringing to $1.26 billion in sales that AOL booked improperly from 2000 to 2004, reports the New York Times. Much of the invalid advertising - $378 million - was booked in 2001, when the companies merged and the dot-com bubble burst. Time Warner had previously restated AOL revenue totaling $679 million.
The current restatements were called for by an independent examiner hired as a condition of Time Warner's settlement last year with the Securities and Exchange Commission.
As a result of the restatements, Time Warner's reported net income will be reduced in 2000 and 2001 but increased from 2002 to 2005, with net income from the beginning of 2000 through the first six months of 2006 being reduced by $21 million.
