AOL reduces ad outlook

Sees downside risks

  • alert
  • submit to reddit

Security for virtualized datacentres

ComputerWire: IT Industry Intelligence

AOL Time Warner Inc yesterday said the performance of its America Online Inc online unit will not be as good as expected, due to "the continued softness" in online advertising. But the company said that, as a whole, it will hit estimates.

"America Online's full-year advertising and commerce revenues are tracking to $1.7bn, with an additional 5% downside risk," the company said.

This compares to previous estimates of advertising and commerce revenue of between $1.8bn and $2.2bn. Earnings before interest, tax, depreciation and amortization for the ISP unit as a whole is expected to be $1.7bn to $1.8bn.

However, AOL Time Warner expects its other businesses will offset the advertising problems. The firm expects to perform within expectations, albeit at the low end of its previous range of EBITDA growth of 5% to 9% and revenue growth of 5% to 8%.

In the current third quarter, AOL expects to see revenue growth in the mid-single digits and EBITDA growth to be in the low-single digits, when compared to the equivalent quarter 2001, the company said.

The ISP unit is currently being shaken down from within by new chief Jonathan Miller, according to reports. The business is now widely seen as the runt of the media giant's litter of units, largely due to the online advertising slump and slowing subscriber growth.

AOL and the US Securities and Exchange Commission are both currently probing certain accounting concerns to the tune of at least $49m, primarily related to how the company started booking revenue when online advertising hit the skids late 2000.

© ComputerWire

Security and trust: The backbone of doing business over the internet

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story


Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.