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To: Bill Harmond who wrote (8030)3/8/1998 8:58:00 PM
From: Zebra 365  Read Replies (1) | Respond to of 27307
 
Beg to differ sir, I show 82% of AOL gross revenues from online services and 18% from advertising and commerce, if you have other information please share it. However, I will agree that advertising and commerce is growing faster for AOL than subscriber fees.

<<<AOL doesn't own their ISP business any longer. They get some revenue from it and service it, but the majority of the fees go to WorldCom now and AOL keeps some. AOL sold their network to Worldcom a few months back as part of the CompuServe acquisition.
AOL likes to talk about their dual revenue stream, but AOL's real growth is in advertising and commerce.>>>

From the 10-Q for Quarter Oct-Dec 1997
sec.gov

AMERICA ONLINE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share data)<TABLE>
..................................................Three months
.....................................................ended
..................................................December 31,
................................................1997.........1996
............................................(Unaudited)..(Unaudited)
Revenues:

...Online service revenues......................$ 483,165...$ 351,220

...Advertising, commerce and other
........revenues........................................108,831......58,192

............Total revenues...........................591,996.....409,412

Costs and expenses:

...Cost of revenues..............................385,986.....261,888

...Marketing......................................96,820.....151,834

...Product development............................23,632......19,755

...General and administrative.....................50,663......29,157

...Amortization of goodwill........................2,161.......1,589

...Restructuring charge................................- .....48,627

...Settlement charge..............................(1,009).....24,300

......Total costs and expenses....................558,253.....537,150

Income (loss) from operations.....................33,743.....(127,738)

Other income (expense), net..........................741......(1,367)

Income (loss) before provision for
...income taxes...................................34,484....(129,105)

Provision for income taxes.......................(13,716)..........-

Net income (loss)................................$20,768...$(129,105)


Earnings (loss) per share-diluted.................$ 0.17....$ (1.37)

Earnings (loss) per share-basic...................$ 0.20.....$ (1.37)

Weighted average shares outstanding-diluted......120,379......94,284

Weighted average shares outstanding-basic........103,184......94,284


Zebra



To: Bill Harmond who wrote (8030)3/8/1998 9:03:00 PM
From: Michael Collings  Read Replies (1) | Respond to of 27307
 
<<Yahoo's deal with MCI is a parallel to AOL. Yahoo keeps part of the montly fee too.>>

William, it was my understanding that YHOO would not keep any of the monthly fees. Has this changed? And doesn't AOL pay World come so much per user hour rather than just signing over all the ISP revenue?