AOL Time Warner shares up when it's down

NEWS Shares in AOL Time Warner edged up 2.5 per cent overnight despite a pessimistic outlook for 2002. Last year the company warned of further difficulties for the advertising industry and saw no signs of an economic recovery. The company was twice forced to reduce its growth expectations in 2001. However, the company said this year its revenues will be up by five to eight per cent. Overnight, AOL Time Warner's share price moved slightly into the black in response to these conservative expectations. In after-hours trading shares were valued at $33.50 - up 2.5 per cent. AOL and Time Warner merged last year in a deal worth $108bn. The vast company now encompasses such household brands as Time magazine, CNN and America Online. However, the internet access unit has found itself under increasing pressure to increase revenues after results show its profit margins are static.