Feeds

AOL sales drop by a quarter, reports billion dollar loss

'Getting healthier everyday'

The essential guide to IT transformation

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.” ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
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.
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?