AOL Swings to a 2Q Loss on Charges; Ad Revenue Falls 27%
Internet media company AOL (AOL) today announced that it swung to a second-quarter loss of $1.1 billion, vs. a profit of $90.7 million a year ago. The loss in the most recent period included a goodwill impairment charge of $1.41 billion.
Total revenue fell 26% to $584.1 million. Ad revenue shrunk 27% to $296.9 million, subscription revenue fell 27% to $260.2 million and other revenue dropped 6% to $27 million. The falling ad revenue was attributable to a renewed focus on improving the user experience, AOL said: “Approximately $70 million of the $110 million year-over-year decline in advertising revenue in Q2 2010 relates to the impact of these initiatives, including a $49 million impact to Third Party Network revenue.”
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