AOL Time Warner is warning its full-year earnings will suffer from effects of the US terrorist attacks.
It said it is being hit by the increased costs of news-gathering related to the events and by the effect these have had on an already-slow advertising market.
But chairman Mr Steve Case is bullish about the company's prospects.
"The bottom line is - despite this tragedy and the resulting economic affects - our unique mix of assets give us confidence that we can generate strong earnings growth next year and into the future," he said.
The company said the state of the advertising market is impacting the company's networks, America Online, publishing and cable operations.
The company has also invested a lot more money in its news-gathering operations, including CNN, Time, AOL and NY1 and will incur significant added expenses for these businesses.
AOL Time Warner says the recurring aspect of its subscription and content businesses, which comprise more than 75 per cent of the total revenue, should not be significantly affected.
The company said it still expects double-digit earnings growth in 2002 despite the uncertainty of the economic environment.
PA