Feeds

AOL reduces ad outlook

Sees downside risks

  • alert
  • submit to reddit

Build a business case: developing custom apps

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

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.