AOL revenue slides 24 percent in 2nd quarter

Subscription revenue is down, dial-up subscribers are still fleeing, and the ad business is sagging. And so it goes.

Larry Dignan

This was originally posted at ZDNet's Between the Lines.

Time Warner's AOL, which is set to be spun off "around the end of the year," had a rocky second quarter as revenue fell 24 percent from a year ago amid a weak advertising market.

According to Time Warner's second-quarter release, AOL saw revenue skid 24 percent to $804 million for the three months ended June 30. Operating income fell 28 percent to $165 million. AOL and Time Warner filed documents detailing the spin-off plans on Monday.

By the numbers:

• AOL's subscription revenue fell 27 percent as the company lost 510,000 dial-up subscribers to end the quarter with 5.8 million customers.

• AOL's ad business fell 21 percent due to lower ad network, display, and paid-search revenue.

• The unit had 107 million average monthly unique visitors and 51 billion U.S. page views.

Overall, Time Warner reported second-quarter net income of $519 million, or 43 cents a share, on revenue of $6.81 billion, down 8.8 percent from a year ago. Time Warner presented its results to account for the spin-off of Time Warner Cable. Wall Street was expecting earnings of 37 cents a share.

Here's a snapshot of Time Warner's revenue picture overall:

Time Warner earnings
Larry Dignan/ZDNet