In the light of a continued decline in ad revenues, AOL Time Warner unit AOL revised downward its 2002 revenue and earnings forecast.
The tidings were broken to a conference of investors on Monday. The assembley learned that while other group businesses are prospering, the online unit continues to languish. “Because of continued softness in AOL’s advertising business . . . [its] full-year advertising and commerce revenues are tracking to $1.7 billion (€1.74bn; £1.09bn), with an additional 5% downside risk.”
The conference also learned that EBITDA (earnings before interest, tax depreciation and amortization) would range between $1.7 billion and $1.8 billion. This compares with July’s estimate of between $1.8 billion and $2.2 billion. AOL TW, however, reaffirmed its guidance for the group as a whole.
Data sourced from: Times Online (UK); additional content by WARC staff