Today, Compuserve announced FY98 Q2 EPS. Attached are subscriber
tallies relevant to AOL and updated calculation of Pro-Forma
gross revenue impact on AOL.
- Subscribers
"To AOL" Subscribers
CSi Q1 (7/30) Q2 (10/31) Chg
U. S. 1,433,000 1,332,000 -7%
Europe 872,000 843,000 -3%
Other International 332,000 315,000 -5%
Total 2,637,000 2,490,000 -6%
----------------------
- Estimate of CSi P/L and Pro-Forma Impact
On AOL Including AOL Give-Up of ANS to WCOM
AOL Pro-forma Impact
(annualized)
CSi Loss ($ 72)m calculations below
ANS gross rev to WCOM
(per AOL FY98 Q2 10Q) ($ 40)m
($112)m
**** /100m Primary* ($1.12) gross per AOL share
**** /119m Fully Diluted ($0.94) gross per AOL share
* FASB: primary shares used when loss
-----------------
- Computation of CSi Loss
Though CSRV does not break-out P/L by division, it has said that
Network Services is profitable. Other input and industry data
suggest that Network Services has operating margins of 10%-15%.
Adding 12% of Network Services revenue to CSRV's total operating
loss, and allocating interest income proportional to gross revenue
of the divisions, approximates the loss of the CSi division.
Computation of CSi Loss
CSRV FY98
Q2 Q1
(10/31) (7/30)
millions
CSRV Op Loss ( 9) ( 8) Q2 excludes $15m 1x charge
+
12% Ntwk Svc (10) (9)
+
CSi share 41% 37%
Interest Inc 1 1
------ ------
*** CSi Loss ($18)m ($16)m
----------------------------------------------------------------
Revenue
CSi $116 $124
Other~ 2 2
Network
Svcs 84 75
Interest 3 2
Note: ~ CSRV 'Other Revenue'. Not same as AOL 'Other'.
Ad-Commerce is included in CSi Revenue. 'Other'
is primarily network services to H&R Block Tax services.
$2m is allowance for license fees from Nifty-Serve.
CSRV/HRB have stated that these are less than 1% of
total CSRV revenue. |
