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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Zebra 365 who wrote (8031)	3/8/1998 9:13:00 PM
From: Bill Harmond	Respond to of 27307

Right. Now look at two things. Under "Costs and expenses", look at the "costs of revenues" line. See how big it is? That is a direct offset from subscriber revenue, most of which is paid to WorldCom, and part of which is for customer service, billing, etc, which AOL handles in-house. Then look at "marketing". Part of that cost is subscriber acquisition ((it went down last quarter because (as I remember) they had the big AOL 3.0 push in the previous quarter.)) Then look at the growth in "online service revenues" which grew 38% compared to "advertising commerce and other revenues" which grew 87%. Yahoo doesn't have the big "online service revenues" or the big off-setting "cost of revenues" lines. But they're the slower-growing parts of AOL's business. Yahoo doesn't have the subscriber marketing costs either (well, maybe a little TV advertising and whatnot), AOL's second-largest expense item. Importantly, as you now realize, Yahoo is focused in the "advertising commerce and other revenues" business, which is the fastest growing segment of AOL.