AOL drags Time Warner income down
AOL continued to weigh on Time Warner as the media group reported a 26 percent drop in second-quarter income on Wednesday, largely because of weakness at its internet division.
AOL, which has emerged as the biggest challenge confronting Jeff Bewkes, chief executive, suffered a drop of 36 percent in operating income as as it continued to shed paying subscribers. Advertising revenue, which AOL is banking on as its future, rose only 2 per cent.
Mr Bewkes blamed the performance on difficulties from integrating the acquisitions that AOL had made since announcing an advertising-focused strategy two years ago.
He expressed optimism for the remainder of the year. Yet Mr Bewkes also noted that Time Warner had arranged for the separation of AOL's internet access business and its online advertising platform – a move that could hasten a potential sale.