Subscription revenue down 23% on year ago quarter
Web services company AOL has reported revenues of $596m for the fourth quarter of 2010, a decrease of 26% compared to $806.7m for the same period a year ago.
Revenue from advertising decreased to $331.6m from $468.6m and subscription revenue decreased by 23% to $235.9m from $307.4m for the same quarter last year.
The company posted an operating income of $67.4m for the fourth quarter of 2010, an increase of 108% compared to an operating income of $32.4m for the comparable period in 2009.
For the fourth quarter ended December 31 2010, the company posted a net income of $66.2m, compared to $1.4m of the same period last year.
For the fiscal year 2010, the company’s total revenues decreased by 26% to $2.42bn from $3.25bn of the previous year.
The company posted an operating and net loss of $982.6m and $782.5m, respectively, for the fiscal year 2010.
AOL chairman and CEO Tim Armstrong said he is proud of what the company has accomplished in 2010 as they began the year with a significant restructuring of AOL and ended the year with an improved balance sheet, a number of new products and a new culture focused on winning.
"We have set aggressive goals for ourselves in 2011 in pursuit of capturing the growing opportunity ahead of us," Armstrong said.