July 29th, 2009
AOL revenue slides 24 percent in second quarter; Spin off around end of year
Time Warner’s AOL, which is set to be spun off “around the end of the year,” had a rocky second quarter as revenue fell 24 percent from a year ago amid a weak advertising market.
According to Time Warner’s second quarter release, AOL saw revenue skid 24 percent for the three months ending June 30 to $804 million. Operating income fell 28 percent to $165 million. AOL and Time Warner filed documents detailing its spin-off plans on Monday.
By the numbers:
- AOL’s subscription revenue fell 27 percent as the company lost 510,000 dial-up subscribers to end the quarter with 5.8 million customers.
- AOL’s ad business fell 21 percent due to lower ad network, display and paid-search revenue.
- The unit had 107 million average monthly unique visitors and 51 billion U.S. page views.
Overall, Time Warner reported second quarter net income of $519 million, or 43 cents a share, on revenue of $6.81 billion, down 8.8 percent from a year ago. Time Warner presented its results to account for the spin-off of Time Warner cable. Wall Street was expecting earnings of 37 cents a share.
Here’s a snapshot of Time Warner’s revenue picture overall.
Larry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.
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