AOL Time Warner cut its second quarter net loss from $924 million a year ago to $734 million, while raising its revenue 3%, from $8.9 billion to $9.2 billion. The quarter ended June 30.
Much of the increase was fueled by subscriptions to various AOL Time Warner properties. Total subscription revenue jumped 10%, to $4.1 billion. Sales from content declined 4%, to $2.9 billion, and advertising and commerce revenue grew slightly, to $2.3 billion.
AOL added 1.3 million new members to its online offerings, bringing its worldwide subscriber base to 30.1 million individuals worldwide. AOL generated $2.1 billion in revenue, up from $1.9 billion a year ago. Advertising sales, which reached $706 million, were 26% above second quarter 2000’s level, while subscription revenue rose 8%, to $1.3 billion. The company increased the cost of its AOL service in the United States by $1.95 per month as of July 1.
The company attributed part of its growth to the cross-marketing opportunities the two companies generate. AOL’s online service is heavily promoted throughout the firm’s magazine and television network, and Time Inc. generates roughly 100,000 subscriptions per month through AOL.
Network
