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Time Warner AOL On Track To Meet Goals, Says Levin.(A)
AOL Time Warner Inc. Chief Executive Gerald Levin said on Tuesday that despite the current market climate, he is "very confident" about the ability of the world's largest Internet and media company to meet the2001 financial targets it laid out earlier this year.
"We are on target with the guidance we've given," Levin said at the Salomon Smith Barney/Broadcasting & Cable Magazine Big Picture conference in New York. "Even in this macroeconomic environment, business is strong and the risk of execution has been overcome."
Chairman Steve Case said AOL Time Warner would be able to meet the targets without increasing the price of its AOL online service, contrary to recent analysts' expectations. Several analysts cautioned about the company's ability to deliver the 12% to 15% growth in earnings before interest, taxes, amortization and depreciation promised for 2001.
A Matter Of Time
"I don't believe we have to raise the prices to meet the numbers, but it hasbeen several years since we raised the price of the AOL service," Case said atthe conference. Most AOL users pay $21.95 per month.
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