When AOL Time Warner reports its first-quarter earnings on Wednesday, you can expect a mixed bag of results and a company that's steadfast about its 2001 outlook. You can also expect chatter about a rate increase for the AOL online service.
Analysts are generally mixed about the prospects for a rate increase.
You may not hear much about a price increase on Wednesday's conference call, but rest assured the debate will heat up. A few analysts have already noted that AOL Time Warner will have to raise rates to meet its 2001 earnings target. He joins ABN AMRO analyst Arthur Newman and Merrill Lynch's Henry Blodget as analysts expecting a price increase. Indeed, AOL is almost viewed as a necessity to many users. AOL Time Warner announced Monday that its core online service has topped 29 million subscribers, a figure that almost ensures it'll hit estimates.