Feeds

AOL sales drop by a quarter, reports billion dollar loss

'Getting healthier everyday'

Intelligent flash storage arrays

AOL blew another hole in its finances today after the internet veteran posted a massive quarterly loss, having swallowed a Q2 goodwill impairment charge related to its sell-off of Bebo.

Worse still, the company saw its advertising revenue plummet 27 per cent to $296.9m in the quarter ended 30 June. In the same period a year earlier AOL pulled in $407.2m.

Total revenues dropped 26 per cent to $584.1m during the quarter.

The company recorded a second quarter loss of $1.06bn, or $9.89 a share, compared with a profit of $90.7m or 86 cents a share in its 2009 Q2. AOL was also hit with a goodwill impairment charge of $1.4bn during the quarter.

“The underlying drivers of the impairment were a significant increase in net assets due principally to cash provided by continuing operations and a significant deferred tax asset associated with Bebo concurrent with a significant decline in AOL's stock price since April,” the firm sombrely noted.

AOL bought the dilapidated social networking site just two years ago for $850m.

Despite all that, the firm’s chairman and CEO Tim Armstrong insisted in a terse statement that AOL was "getting healthier every day".

He added: "Although we have much more significant goals for the future of AOL, we are pleased with this quarter's internal and external trends.” ®

Top 5 reasons to deploy VMware with Tegile

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
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
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 cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
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?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.