AOL reported second-quarter revenues of USD 584.1 million, down 26 percent from a year earlier. Advertising revenues dropped 27 percent to USD 296.9 million, and subscription revenues fell 27 percent to USD 260.2 million. The internet susbcriber base was down 25 percent from a year ago to 4.362 million at the end of June, with ARPU down 1 percent to USD 18.10. AOL attributed the decline in ad revenues to a move away from lower margin business, particularly in Europe, as well as the sale of Bebo. Search advertising was also down sharply due to the lower number of internet susbcribers. Adjusted OIBDA tumbled 37 percent to USD 166.6 million. Net profit was hit by a USD 1.414 billion impairment charge on goodwill, prompted by the sales of Bebo and ICQ and the recent fall in AOL's share price. The resulting net loss was USD 1.055 billion, versus a profit of USD 90.7 million a year ago. The result also included a one-time tax benefit of USD 302.7 million from Bebo. Looking forward, AOL said it expects to record a one-time gain of USD 120-130 million from ICQ and USD 17.5 million from selling its stake in Kayak Software.
