Feeds

AOL TW posts record $99bn loss

It's only money

  • alert
  • submit to reddit

Internet Security Threat Report 2014

AOL Time Warner lost a stonking $99bn last year. Still there's no need to be glum. The giant media and Internet may have lost loads of cash, but at least it earned something - a place in the history books as the company that notched up the biggest loss in US corporate history.

Half of the loss came with $45.5bn charge in Q4 to write down the value of its Internet outfit AOL.

No doubt the numbers will further entrench the views of those who believe that the AOL Time Warner union is a marriage made in hell and which should end in divorce.

Looking at the numbers for the AOL Internet business, EBITDA (earnings before interest etc) for Q4 fell 11 per cent to $474m on revenues that dipped 6 per cent to $2.3bn.

For the full year, EBITDA dropped by 22 per cent to $1.8bn on lower revenues of $9bn.

The Internet operation attracted two million new subscribers in 2002 taking its global membership 35.2m.

However, the 16 per cent growth in AOL's subscription revenues (made up of new members and price hikes in the US and Europe) was more than offset by a 39 per cent fall in most other revenue streams including advertising and commerce.

At group level, chief exec Dick Parsons, said that reducing debt for AOL Time Warner was a key priority for 2003 with the aim of getting the overdraft down to around $20bn by the end of 2004.

Looking ahead for 2003, AOL Time Warner expects single-digit full-year revenue growth with EBITDA remaining essentially flat.

Oh, and vice chairman Ted Turner also said he was stepping down from the company.

Earlier this month Dick Parsons was named as the new chairman of the giant media and Internet company following Steve Case's to decision to quit. ®

Related Stories

Dick Parsons named as new AOL TW chairman
Case vacates AOL Time Warner chair

Top 5 reasons to deploy VMware with Tegile

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
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.