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: Sam who wrote (4546)	8/20/1997 2:12:00 PM
From: jack rand	of 13594

>Fact is, it had no effect on the operating momentum AOL currently >has reached. You must mean operating momentum like this: AOL's 08/07 Q4 earnings release reported 47% increase in advertising/commerce revenues vs. Q3. Tel-Save's 8/14 earnings release suggests that AOL recognized $14m of the TALK $100m in Q4. (Robertson Stephens estimated $15m) If so, AOL's ad-commerce revenues for Q4 excluding Tel-Save were up only 6% vs. Q3 (as originally reported so as not to double-dip the $7.3m moved from Q3 to Q4. AOL's '47%' double-dips). biz.yahoo.com 08/14/97 .....we estimate charges for the AOL agreement of approximately $26 million, $25 million, and $12 million, respectively for the next three quarters.....by the end of the first quarter of 1998 $77 million will have already been expensed * $77m - ($26+$25+$12) = $14m expensed Q4 * Unknown is how much of the $50m from the CUC deal announced 06/10 AOL recognized Q4. Ratably over the 3 year term would be about $1m. But AOL has in past recognized healthy portions up-front for "start-up/ production work". This might be as much as $5m in addition to the $1m. If so, Q3-Q4 ad/commerce growth ex-TALK and CUC would be negative by up to $2.2m.

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