Time Warner's full-year 2007 report, published today, shows AOL generated revenues of $5.2bn last year, down by $2.6bn from 2006.
AOL said the decline was due to a $3bn decrease in subscription revenues, resulting from the sale of its ISP operations in the UK, France and Germany. AOL sold off the businesses as part of a new strategy of offering its e-mail and other products free of charge to consumers.
However, its decision could pay off in the long term. With an increased focus on free, advertising-funded operations, AOL increased advertising revenues by 18 per cent, or $345m in 2007 compared with 2006.
Ad revenues benefited from growth in sales of advertising on third-party sites via its Third Party Network unit. Operating income, or pre-tax profit, stayed relatively flat at $2.5bn last year.
The report shows that over the past few years, AOL is gaining an increasing share of online ad spend. In 2005 AOL generated $1.34bn in advertising revenues. For 2007, that figure topped $2.23bn.
AOL said the decline was due to a $3bn decrease in subscription revenues, resulting from the sale of its ISP operations in the UK, France and Germany. AOL sold off the businesses as part of a new strategy of offering its e-mail and other products free of charge to consumers.
However, its decision could pay off in the long term. With an increased focus on free, advertising-funded operations, AOL increased advertising revenues by 18 per cent, or $345m in 2007 compared with 2006.
Ad revenues benefited from growth in sales of advertising on third-party sites via its Third Party Network unit. Operating income, or pre-tax profit, stayed relatively flat at $2.5bn last year.
The report shows that over the past few years, AOL is gaining an increasing share of online ad spend. In 2005 AOL generated $1.34bn in advertising revenues. For 2007, that figure topped $2.23bn.
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