Bloomberg: AOL Time Warner Second-Quarter Net More Than Doubles
Washington Post: Subscribers Fleeing AOL
On the surface, it might sound like good news, but AOL is still in trouble. AOL Time Warner announced today that it doubled its quarterly profits on revenues of $10.8 billion, but the profit boost came in large part thanks to a $750 million legal settlement with Microsoft over market competition vis-a-vis AOL's Netscape browser. Ticket sales also boosted the number, particularly from the summer blockbuster "Matrix Reloaded."
The online division, meanwhile, is not in great shape. Profit for the online division fell 23 percent, seeing an exodus of 846,000 customers, bringing the total number of defections to 1.2 million since last year. In addition, AOL is expecting the Securities and Exchange Commission will require it to restate $400 million in online ad revenues, due to dubious accounting.
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