Lot of digital nuggets strategically placed throughout the prepared remarks during the Time Warner Wednesday morning — and, of course, a lot of attention to AOL in this first call since the change in management and latest re-org. A few highlights from the
Seeking Alpha transcript:
AOL: Chairman and CEO Dick Parsons said the company believes the new strategy is on track: “We know that when our valuable tenured subscribers switch to free, we are maintaining the vast majority of their usage. We’re also signing up a lot of new users. … While 2007’s results rely largely on maintaining the base of usage that we already have, future growth will be more dependent on garnering incremental usage. Accordingly, AOL management is committed to insuring that the organization’s composition and orientation is designed to create and deliver compelling new products to build AOL’s audience and usage going forward.”
— Advertising revenue was up 49 percent in 4Q06 for the third consecutive quarter of 40 percent-plus advertising growth. Growth was strong across all revenue sources. AOL brand advertising was up 38 percent, search was up 34 percent, and Advertising.com increased over 100 percent, including the impact of an expanded relationship with a major customer. Even without this one account, advertising.com was up a very strong 43 percent.
— 3 million members actively have opted out for free accounts since the program began last August; another 3 million new account signups.
— Too long to publish here so check out the transcript for a detailed explanation from president and COO Jeff Bewkes about why they think AOL can reverse a trend of declining page views.
— Bewkes: “With this ad growth going faster than all the competitors except Google, the thing I would mention that you asked about, is there are really only three companies that have both a large owned and operated network and an extensive third-party platform. So we see Ad.com continuing to benefit from some of the inventory that they can’t efficiently use, that we can.”
Online ad market: “Dick made the point, and clearly it’s right, that over time, as something gets very large, you can’t go at 20 percent, 30 percent for 100 years, obviously. So that will bite in, but we don’t think that’s happening this next year.”
TW Cable & Wireless: “We know that our customers are interested in mobile capabilities that would complement the services we already provide. Time Warner Cable is testing a number of wireless services to help them find out how best to meet their customers’ needs in this regard.”
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