AOL Time Warner posts strong earnings

AOL Time Warner's loss narrowed in the first quarter as the company posted a 21% increase in earnings, boosted by growth in subscriptions and advertising revenue, according to wire reports.

The earnings gain exceeded analysts' expectations. The mega-media company recorded a loss of $1.37 billion, or 31 cents a diluted share, compared with a loss of $1.46 billion, or 34 cents a share, for the same period one year earlier. First quarter results include merger-related expenses and pretax noncash charges of $620 million reflecting the write-down of certain investments in the AOL Time Warner investment portfolio.