Feeds

AOL subscribers go AWOL

2.3m disappear in a year

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

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

Beginner's guide to SSL certificates

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
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
prev story

Whitepapers

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.
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.
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.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.