AOL Time Warner Cuts Loss as Revenue Rises
AOL Time Warner cut its second quarter net loss from $924 million a year ago to $734 million, while raising its revenue 3%, from $8.9 billion to $9.2 billion. The quarter ended June 30.
Much of the increase was fueled by subscriptions to various AOL Time Warner properties. Total subscription revenue jumped 10%, to $4.1 billion. Sales from content declined 4%, to $2.9 billion, and advertising and commerce revenue grew slightly, to $2.3 billion.
AOL added 1.3 million new members to its online offerings, bringing its worldwide subscriber base to 30.1 million individuals worldwide. AOL generated $2.1 billion in revenue, up from $1.9 billion a year ago. Advertising sales, which reached $706 million, were 26% above second quarter 2000’s level, while subscription revenue rose 8%, to $1.3 billion. The company increased the cost of its AOL service in the United States by $1.95 per month as of July 1.
The company attributed part of its growth to the cross-marketing opportunities the two companies generate. AOL’s online service is heavily promoted throughout the firm’s magazine and television network, and Time Inc. generates roughly 100,000 subscriptions per month through AOL.
