Why are we not surprised? The company has already sold AOL Europe including France, Germany and the UK and apparently their profits are down? AOL UK alone use to make some 330 million pounds so take into account the exchange rate at some 2:1 and there on its own you're missing 650 million dollars, not a small amount by any stretch of the imagination. And what about Germany and France?
Personally I think this is a case of Time Warner having under estimated AOL as a company and channel for its advertising so they're blaming their lack of direction and foresight.
Plus of course if you have TW literally pulling any and all profits from the AOL component and not re-investing in the infrastructure then you're going to see profit loss. A company needs to re-invest and during these times probably even more so to keep the customer active within their site.
Good Luck AOL but personally I think TW is saying screw you in a big way!