This was originally posted at ZDNet's Between the Lines.
Time Warner's first quarter was weighed down by its AOL unit, which saw revenue fall 23 percent. Time Warner CEO Jeff Bewkes reiterated that the company is looking for "the right ownership structure for AOL."
Here's why: AOL reported first-quarter revenue of $867 million, down 23 percent from a year ago. Subscription (dial-up) revenue fell 27 percent, and advertising sales declined 20 percent. Both declines were expected, and AOL noted that ad sales were weak in all categories (ad networks, display, and search).
Operating income for AOL fell 47 percent to $150 million, which included restructuring costs of $58 million. AOL also ended the quarter with 106 million average U.S. unique users. AOL's dial-up business had 6.3 million subscribers, down 2.4 million from a year ago and 570,000 from the fourth quarter.… Read more