More on AOL: From the Income statement it is surprising to see how
low marketing expenses were last quarter! Notice the huge write of
that the copsmade them take the second semester of 96 for wrongly
capitalizingmarketing expenses. Ignoring this, Marketing related
expenses forthat period were 230.9 million it has gone down to 194.7
million in the last half of 97! Traceable to a dramatic decline in
marketing expenses in the last quarter of 97: only 96 million versus
151 million the year ago period! Something is BERY BERY FISHY here.
Do they really stopped sending out all those CD's out? Are they
back to capitalizing marketing expenses?
America Online, Inc. Consolidated Summary of Results
(Amounts in thousands, except per share data)
Three months ended Six months ended
Dec. 31, Dec. 31,
------------------ ------------------
1997 1996 1997 1996
------------------ ------------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)Revenues:
Online service
revenues $ 483,165 $ 351,220 $ 917,332 $ 662,352
Advertising, commerce and
other revenues 108,831 58,192 196,302 97,042
--------- --------- --------- ---------
Total revenues 591,996 409,412 1,113,634 759,394
Costs and expenses:
Cost of revenues 385,986 261,888 712,987 463,042 Marketing
Marketing 96,820 151,834 194,622 230,977
Write-off of deferred subscriber
acquisition costs -- -- -- 385,221
Product development 23,632 19,755 39,447 38,339
General and
administrative 50,663 29,157 104,974 49,261
Amortization
of goodwill 2,161 1,589 3,837 3,509
Restructuring charge -- 48,627 (1,306) 48,627
Settlement charge (1,009) 24,300 (1,009) 24,300
--------- --------- --------- ---------
Total costs and
expenses 558,253 537,150 1,053,552 1,243,276
Income (loss) from
operations 33,743 (127,738) 60,082 (483,882)Other income
(expense), net 741 (1,367) 6,068 1,088
--------- --------- --------- ---------
Income (loss) before provision for
income taxes 34,484 (129,105) 66,150 (482,794)
Provision for income taxes (13,716) -- (26,218) --
--------- --------- --------- ---------
Net income (loss) $ 20,768 $(129,105) $ 39,932 $(482,794)
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