Gains Boost AOL, but Accounting Probe Heats Up

Two large gains lifted AOL Time Warner(AOL Quote) to sharply higher earnings in the second quarter over a year ago, while revenue rose 6% and the company's overall debt fell to $24.2 billion from $26.3 billion.

The media giant also said full-year revenue would rise by a mid-single-digit percentage over the $41 billion it put up in 2002, roughly in line with the analyst consensus of $42.85 billion as compiled by Thomson First Call. The company's revenue outlook reflects expectations for a mid-single-digit revenue decline at its America Online unit and a 35% to 45% fall in AOL advertising revenue.

The shares were down 15 cents, or 0.9%, to $16.70 on Instinet. ...