Posts net income of $1.4m compared to loss of $1.96bn in the same period last year
Web services company AOL has reported revenues of $809.7m for the fourth quarter of 2009, a decrease of 17% compared to $974.2 for the same period a year ago, due to declines in subscription and search and contextual revenue.
The company posted an operating income of $30.3m for the fourth quarter of 2009, compared to an operating loss of $1.93bn for the comparable period in 2008.
For the fourth quarter ended December 31, 2009, the company posted a net income of $1.4m. For the same period in 2008, net loss was $1.96bn due to a $2.2bn non-cash goodwill impairment charge.
Advertising revenue for the quarter was $471.6m, a decrease of 8% from the same quarter a year ago, while the Subscription revenue was down by 28% to $307.4 compared to the same period last year.
For the full fiscal year 2009, the company reported revenues of $3.26bn, a decrease of 22% compared to $4.17bn in 2008. Operating income was $458m compared to an operating loss of $1.17bn in 2008. Net income attributable to AOL was $248.8m or $2.35 earnings per dilute share in 2009, compared to a net loss of $1.53bn or $14.42 per dilute share.
Tim Armstrong, chairman and chief executive officer of AOL, said: “We have made significant progress in support of the long-term vision we see in the future of AOL, but today’s results continue to reflect the need for our focus and execution on the work required in the turnaround of the company.
“2009 marked the closing of an important chapter in AOL’s history and the opening of a new chapter that we are passionately pursuing. We have a clearly defined strategy, and we enter 2010 incredibly focused on day-to-day execution.”