The latest corporate colossus to issue a profits warning is Time Warner, now in the final stage of being acquired by America Online.

Investors were briefed yesterday that weaker advertising revenues at TW’s cable networks CNN, TBS and TNT would lead to a shortfall of earnings in the fourth quarter, as would disappointing music and movie box office sales.

The group’s latest cash earnings growth projection for the 2000 fiscal is now 11% instead of 12%-13% as previously forecast.

The market marked down Time Warner stock by 9% to $63.25. AOL shares also dipped, in association, by 7% to $42.24.

News source: Advertising Age - Daily Deadline