AOL’s Revenues and Opportunities: Q2 Earnings Call

Time Warner announced its Q2 earnings earlier today and AOL brought in total revenues of $2.1 billion, down from $2.2 billion for the year ago period. The ad revenues on AOL increased ad revenues 45 percent on a reported year-over-year basis.

In the conference call, Don Logan, Chairman, Media & Communications Group at TW said: “While that’s impressive it’s not as strong as the industry leaders….Growth in non-member unique visitors has more than offset the membership decline. All this is a positive trend it is also a challenge because currently CPM’s for AOL branded sites are significantly higher than our non-branded AOL sites. We will be very focused on selling more effectively across the entire AOL network to drive CPM’s higher.”

On judging AOL.com success: “Really it’s about driving traffic and it’s about the amount of time that they spend with you once that you get them into your portal and that by adding functions and features and functionality and — and — and content, rich content, that is addictive that they come back to over and over again.”

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