04 August 2010 | Author: J. Morton News Editor
Web giants AOL have posted their financial figures for the latest quarter of 2010, and things aren't looking too rosy for the portal and technology company, as it notched up losses across the board.
AOL most recently made news by cutting loose social networking site Bebo, which ultimately proved to be a disaster for the company. Purchased for $850 million (£533 million) just two years ago, AOL unloaded the company for an undisclosed sum, rumoured to be under $10 million (£6.27 million) in June.
The company was affixed a goodwill impairment charge of $1.4 billion (£878.1 million) during the quarter.
Total revenues for the company once near-synonymous with the internet took a hit to the tune of 26 per cent, dropping to $584.1 million (£366.4 million), contributing to an overall second quarter loss of $1.6 billion (£1 billion), or $9.89 (£6.20) per share. Revenues at this time last year were $90.7 million (£56.89 million).
Commenting on its financial situation, the company said: "The underlying drivers of the impairment were a significant increase in net assets due principally to cash provided by continuing operations and a significant deferred tax asset associated with Bebo concurrent with a significant decline in AOL's stock price since April."
Speaking on the actions taken during the quarter, AOL CEO Tim Armstrong said, "In the second quarter, we continued our efforts to successfully reposition AOL for growth," adding optimistically that "the company is getting healthier every day."
He said that the company is "pleased" with the general trends, though the quarter even saw losses in AOL's ad service revenues.
Analysts had predicted AOL to post earnings of $602.1 million (£377.6 million) in the second quarter.
Tough times continue for former web leaders AOL
Web giants AOL have posted their financial figures for the latest quarter of 2010, and things aren't looking too rosy for the portal and technology company, as it notched up losses across the board.AOL most recently made news by cutting loose social networking site Bebo, which ultimately proved to be a disaster for the company. Purchased for $850 million (£533 million) just two years ago, AOL unloaded the company for an undisclosed sum, rumoured to be under $10 million (£6.27 million) in June.
The company was affixed a goodwill impairment charge of $1.4 billion (£878.1 million) during the quarter.
Total revenues for the company once near-synonymous with the internet took a hit to the tune of 26 per cent, dropping to $584.1 million (£366.4 million), contributing to an overall second quarter loss of $1.6 billion (£1 billion), or $9.89 (£6.20) per share. Revenues at this time last year were $90.7 million (£56.89 million).
Commenting on its financial situation, the company said: "The underlying drivers of the impairment were a significant increase in net assets due principally to cash provided by continuing operations and a significant deferred tax asset associated with Bebo concurrent with a significant decline in AOL's stock price since April."
Speaking on the actions taken during the quarter, AOL CEO Tim Armstrong said, "In the second quarter, we continued our efforts to successfully reposition AOL for growth," adding optimistically that "the company is getting healthier every day."
He said that the company is "pleased" with the general trends, though the quarter even saw losses in AOL's ad service revenues.
Analysts had predicted AOL to post earnings of $602.1 million (£377.6 million) in the second quarter.
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