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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: Keith J who wrote (7823)2/13/1998 1:58:00 PM
From: Kerry Phineas  Read Replies (1) | Respond to of 13594
 
Keith, thats only the marginal cost of having someone use an hour of usage. Of course there's still overhead, fixed costs relating to setting up networks, and per subscriber costs like customer service and acquisition expenses; ie a portion of their expenses would tend to be per hour, but many are per sub, some are just general overhead, etc; also, of course it costs money to buy growth. Also, there's a lot of usage by people who are only temporary subscribers. BUT, I'm betting he pulled the numbers out of his ass.



To: Keith J who wrote (7823)2/13/1998 2:48:00 PM
From: Harry Larson  Read Replies (1) | Respond to of 13594
 
>>AOL is recording a 2 cent gain per quarter for the next 5 years in
>>relation to XCIT stock.

No. It is $1 million per quarter for the next 4.5 years.
How much it translates to per share is of course function of
number of shares.

It's all in the AOL conference call transcripts on AOL.

Please do better research.


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