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AOL Time Warner reports strong quarter

AOL Time Warner has reported strong second-quarter results, boosted by gains in its filmed entertainment and cable units.

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

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