Subscription revenue down 28% on year ago quarter
Web services company AOL has reported revenues of $664.3m for the first quarter of 2010, a decrease of 23% compared to $864m for the same period a year ago, due to declines in subscription and search and contextual advertising revenue.
The company posted an operating income of $80.7m for the first quarter of 2010, compared to an operating profit of $141.9m for the comparable period in 2009.
For the first quarter ended March 31, 2010, the company posted a net income of $34.7m, a decrease of 58% compared to $82.7m of the same period last year.
Advertising revenue for the quarter was $354.3m, a decrease of 19% from the same quarter a year ago, while subscription revenue was down 28% to $282.7m compared to same period last year.
Tim Armstrong, chairman and chief executive officer of AOL, said: “AOL continues to make progress against our long-term objective of becoming an internet growth company. Our results highlight the accomplishment of our first goal in AOL’s turnaround which was to significantly reduce AOL’s cost structure.
“While our restructuring had an impact on Q1 advertising results, we are encouraged by the advertising market’s recent strength. We are now entering the second phase of AOL’s plan which is to greatly improve the consumer experience, scale the advertising systems and teams, and aggressively pursue our strategy in the marketplace.