Feeds

AOL subscribers go AWOL

2.3m disappear in a year

  • alert
  • submit to reddit

The Power of One Infographic

AOL continues to bleed subscribers, the internet arm of giant media outfit Time Warner confirmed yesterday.

It shed 2.3m customers in the year to the end of March taking its total subscriber base to 21.7m. Or to put it another way, it lost 549,000 punters in the first three months of the year.

In Europe, the ISP added an extra 18,000 subscribers in Q1 taking the number of net users to 6.3m. Overall, though, AOL Europe still managed to lose 69,000 customers compared to the same quarter last year.

The ongoing slide in numbers hit subscription revenues leading to a fall of eight per cent ($145m) to $1.77bn for the three months to the end of March. Although advertising revenues were up 45 per cent ($97m) to $311m, overall revenues for Q1 were down 3 per cent ($58m) to $2.1bn from $2.19bn.

Operating income rose 17 per cent ($47m) to $324m.

Of course, AOL isn't just twiddling its fingers hoping for the tide to turn: the company last month made its much anticipated jump into the internet telephony business.

At the same time, it has also moved to cut overheads. In December, AOL chopped 750 workers from its HQ in Northern Virginia, three weeks after announcing plans to split the business into four divisions. Axing four per cent of the workforce also cuts costs as the ISP giant battles to cope with falling customer numbers. ®

Related stories

AOL launches VoIP
Time Warner settles AOL SEC fraud investigation
AOL confirms 750 job cuts

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.