• $48
  million decrease in AOL’s profit
  between this quarter and the
  same quarter a year ago
• 4.6
  million number of people who STILL subscribe to AOL’s legacy service after all these years source

• » Why the cruddy profits? It’s worth keeping in mind that AOL is a different company than it was a year ago. The company, fresh after leaving the disastrous merger with Time Warner which hurt both companies, is in the midst of making a big push into content, away from its core subscription business. (Disclosure: We freelance for AOL News occasionally.) Even considering that, their profit picture is significantly lower than expected – instead of the analyst-expected 70 cents per share, they could only muster 39 cents per share. Part of this is due to the quickly-falling legacy subscriber base and part of it is due to continuing advertising declines.

Posted by Ernie Smith • Permalink