New York, July 24: AOL Time Warner Inc. on Wednesday said second-quarter earnings rose sharply amid hit films such as "The Matrix Reloaded," strength at its popular cable TV networks, and cost-cutting at its struggling America Online unit. AOL Time Warner's bottom line also got a big lift from a series of one-time gains from selling its stake in the Comedy Central channel, settlement of a dispute with Microsoft Corp. and other items.

Additionally, the company said securities regulators have told it that its accounting for two transactions involving Bertelsmann AG was incorrect. But the company said its auditors still believe that the accounting was appropriate.
The world's largest media company said its net profit rose to $1.1 billion, or 23 cents a share, compared with $396 million, or 9 cents a share, a year-earlier. Excluding certain one-time items it had earned $394 million the year before. Bureau Report