America On-Line: will it survive ...? Message Board

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Technology Stocks : America On-Line: will it survive ...?

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To: Bald Man from Mars who wrote (7486)	2/10/1998 9:35:00 PM
From: Keith J	of 13594

Need to clarify my earlier post. Gross margin reduction is not as bad as I indicated. The increase in merchandise revenue is accounted for in cost of revenues, so it wasn't an accurate comparison per se. Needless to say, overall margins did decline though. One additional item. Did anyone read the Tel-Save agreement for Compuserve? Tel-Save says they expect about 70% of Compuserve subscribers as customers by the end of 1998. Um, if I'm reading AOL's release right, less than 1.5% of AOL customers have signed up with Tel-Save thusfar. Yeah, I think 70% won't be a problem to achieve. I've only been short about 30 hours, so I'm not throwing in the towel yet. KJ

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