AOL Time Warner Reports $996M Third Quarter Loss

Share this content:
AOL Time Warner Inc. reported a pro forma net loss of $996 million, or 22 cents per share, yesterday for the third quarter ended Sept. 30, up from a loss of $902 million, or 21 cents per share a year ago.

The company noted that its third quarter loss included $134 million in merger-related expenses and $196 million in charges pertaining to the write-down of certain investments.

Total pro forma revenue for the third quarter rose 6 percent to $9.3 billion, from $8.8 billion in the same quarter in 2000. AOL Time Warner said its increased revenue was helped by a 13 percent increase in subscription revenue, which was up to $4.2 billion. Its overall subscription base grew 18 percent to more than 137 million in the third quarter.

However, while content and other revenues rose 6 percent in the third quarter to $3.2 billion, overall advertising and commerce revenue fell 5 percent to $1.9 billion.

The company's America Online Internet service added 6.7 million new subscribers in the quarter, bringing its total to 31.3 million. AOL's total revenue climbed 13 percent to $2.2 billion, from $1.9 billion a year ago. Subscription revenue for the Internet service rose 14 percent to $1.4 billion, the company said.

AOL Time Warner also said that advertising and commerce revenue at AOL increased 5 percent to $624 million, driven largely by a 7 percent increase in advertising, contract settlements and intercompany revenues.


Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above