AOL Time Warner says demand for its internet and cable systems has pushed its earnings up by 20 per cent.
The company reported third-quarter earnings of $2.46 billion, or 30 cents a share, from $2.02 billion, or 21 cents a share, a year ago.
It says the popularity of its internet service helped offset the declining advertising market.
AOL's broad base of media assets, encompassing magazines such as Time to record labels hosting Madonna and one of the US's main cable networks, also helped prop up its earnings.
Revenues rose 6 per cent to $9.2 billion, although the pre-tax loss widened from $897 million last year to $995 million.
Exceptional charges included $133 million in merger costs.
The company issued a profit warning following the September 11th US terrorist attacks, citing the increased cost of covering the crisis at its cable and publishing divisions.
AOL says it's still looking for a 20 per cent rise in underlying earnings for the year as a whole, with "double-digit" percentage growth in 2002.
PA