Feeds

AOL warns of tough times ahead

Oh dear

  • alert
  • submit to reddit

Remote control for virtualized desktops

AOL has warned that revenues for 2003 are expected to remain flat and that the Internet division of AOL Time Warner is unlikely to deliver solid growth until 2004.

Total revenues for AOL for 2002 are expected to come in somewhere between $8.8bn and $9bn with advertising and ecommerce revenues generating between $1.5bn and $1.6bn. Earnings before interest etc (EBITDA) for 2002 is expected to skip in at between $1.7bn and $1.8bn.

Looking ahead to next year, AOL reckons "solid growth in worldwide subscription revenue" will be offset by declines in advertising and commerce revenues of between 40 per cent and 50 per cent.

As a result, overall revenues for the Internet division are expected to remain flat in 2003 compared with 2002.

The decline in high-margin advertising and commerce revenues is expected to lead to a fall in EBITDA of as much as 25 per cent, the company said.

In a statement AOL Time Warner CFO, Wayne Pace, said: "Our 2002 results continue to track as we expected. Even though it's early to give a precise 2003 outlook for America Online, management has just concluded a comprehensive review of its operations and has developed an achievable business plan to build a strong foundation for the future.

"It is clear that 2003 will be a transition year, but with this plan we expect America Online once again to deliver solid EBITDA growth beginning in 2004."

This outlook for AOL was published prior to meeting designed to update analysts on the progress of AOL.
Earlier reports suggested AOL might try and increase efforts to flog its content to those who already have broadband supplied by another provider.

The "bring your own access" model - which costs punters $14.95 a month for AOL content, email etc. on top of the cost of their broadband connection - is viewed as an area of potential growth for AOL. ®

Related Story

AOL to outline broadband strategy today

Security for virtualized datacentres

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
Hungary's internet tax cannot be allowed to set a precedent, says EC
More protests planned against giga-tariff for Tuesday evening
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
ISPs handbagged: BLOCK knock-off sites, rules beak
Historic trademark victory, but sunset clause applies to future blocks
prev story

Whitepapers

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.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.