America Online has announced record profits of $1.2bn for the last financial year, up from $391m last time.
LONDON (Brand Republic) - America Online has announced record profits of $1.2bn for the last financial year, up from $391m last time.
The company also reported a 95% increase during the last quarter in revenue from e-commerce and advertising. The company’s e-commerce and ad revenue grew by $300m to $609m in the quarter and accounted for a third of the company’s total fourth-quarter revenues of $1.9bn, an increase of 39%.
The company’s service attracted 992,000 new subscribers in the fourth quarter, and 5.6m during the year. This translates into a total of 23.2m members worldwide.
The news comes as concerns grow over AOL’s planned merger with Time Warner, which the two companies hope will be completed this autumn. Rival company Disney is reported to be urging US regulators to split the merged company in two, to prevent it dominating the interactive TV market.
However, Steve Case, AOL’s chairman and chief executive officer, is optimistic about the merger.
“We are more excited than ever about the enormous potential of AOL Time Warner. Shareholders of both companies voted to approve the merger, and we are on track to close this fall,” he said.