Media giant AOL Time Warner expects its America Online division to suffer a 15-25% plunge in earnings before interest, taxes and other charges next year.
America Online's advertising and commerce revenues, which provide a big slice of the profits, were expected to slump by up to 50% in 2003, the company forecast in a statement.
The group said it expected solid growth in worldwide America Online subscriptions but this would be offset by the drop in advertising and commerce income, leaving the division's revenues 'essentially flat' next year.
AOL confirmed its 2002 forecast for revenues of between $8.8 billion and $9 billion at America Online.
