Thursday, November 04, 2010

FT.com / Technology - AOL revenues down 26%

Not likely to be a sustainable business model…

Revenues at AOL fell by 26 per cent in the third quarter, hit by sharp declines in advertising and subscription sales.

[…]

In spite of the revenue slump, net income jumped 132 per cent to $171.6m, or $1.60 a share, from $74m or 70 cents per share a year ago, thanks to asset sales.

AOL sold instant messaging service ICQ in April for $187.5m, less than half of the $400m it paid for it in 1998. In June it sold Bebo, the social networking site it bought for $850m in 2008, reportedly for less than $10m.

FT.com / Technology - AOL revenues down 26%

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