AOL Time Warner has reported strong second-quarter
results, boosted by gains in its filmed entertainment and cable
units.
Revenues for the quarter ending 30 June grew 6% to $10.8bn, and
net income came to $1.06bn, compared with $396m for the same period
last year.
"It's fair to say we delivered overall a solid quarter," said
chairman and chief executive officer (CEO) Richard Parsons.
However, the AOL unit did not fare so well, turning in a 6%
decrease in revenues for the second quarter as advertising demand
dried up. Subscription revenues at AOL grew 6%, in part thanks to
strong gains for AOL Europe.
AOL reported 25.3 million members in the US by the end of the
quarter, representing a 1.2 million decrease from the same quarter
last year. The internet unit pinned much of the loss on the removal
of non-paying members from its subscriber base.
AOL Europe members stood at 6.2 million at the end of the
quarter, 238,000 more than for the same period last year.
Parsons said the company is betting on AOL's upcoming AOL 9.0
Optimized software to buoy the internet division.
The software, which is due out later this quarter, has a range
of features geared for broadband use in an effort to migrate AOL's
many dial-up subscribers to high-speed connections.
AOL Time Warner is still being dogged by a Securities and
Exchange Commission probe which began last year. Upon issuing its
quarterly results, it said it may have to restate financial results
related to two transactions between AOL and
Bertelsmann. It has already restated two years' worth of financial
results last year as a result of accounting problems within the AOL
unit.
Scarlet Pruitt writes for IDG News Service