US media conglomerate Time Warner has reported that its ISP subsidiary AOL has seen a 24% year-on-year drop in revenues in the second quarter of 2009, down to USD804 million at the end of June. The company’s customer base fell to 5.8 million at the end of the three-month period, as operating income slipped to USD165 million. Time Warner recently purchased the remaining shares in AOL that it did not already own as it looks to spin the company off into a separate entity.
One subsidiary to have already undergone the separation process is Time Warner Cable (TWC), the country’s second largest cable operator by subscribers. The firm underwent a full legal and structural separation from its parent in May 2009 following regulatory approval. TWC reported that revenues had grown 4% year-on-year, up to USD4.5 billion at the end of the second quarter of 2009. Operating income jumped 20% year-on-year to USD882 million, whilst net income attributable to TWC was USD316 million. The company added 88,000 net new broadband subscribers in the quarter ending June, and of its 8.76 million total customers, it said 3.34 million were subscribed to the company’s triple-play offering.