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AOL 4Q Profits More Than Double

July 20, 2000

SPRINGFIELD, Va. (AP) _ America Online Inc. said it more than doubled its fourth quarter profits compared to last year, easily beating Wall Street estimates as revenues surged 40 percent.

The Dulles, Va.-based company on Thursday reported net earnings of $338 million, or 13 cents per share, for the quarter ended June 30. That is up 115 percent from $157 million, or 6 cents per share, in the year-ago quarter.

Analysts surveyed by First Call/Thomson Financial had pegged earnings at 11 cents per share.

``This has been a record-breaking year for America Online, and we finished on a strong note,″ said AOL Chairman and CEO Steve Case.

Revenues for the quarter were $1.93 billion, up from $1.38 billion for the final quarter last year.

Advertising revenue nearly doubled to $609 million from $313 million for the year-ago period.

Revenue from subscriptions increased 26 percent to $1.2 billion.

Over the last 12 months, the company added 5.6 million new members, including 992,000 in the last three months. It added 5.1 million new members last year, including 755,000 in the final quarter.

Despite the positive results, shares of AOL, which were up $2.50 to $61.75 in regular trading, fell $2.75, or 5 percent, in after-hours trading on the New York Stock Exchange.

For the fiscal year ending June 30, AOL reported net earnings of $1.2 billion, or 48 cents per share, up from $754 million, or 30 cents per share, for all of 1999. That compares to a 1999 net income of $391 million.

America Online is the world’s largest Internet provider. Earlier this year it announced plans to merge with Time Warner, the world’s largest media company.

Federal regulators are still reviewing the proposed $136 billion merger. Shareholders from both companies approved the deal last month.


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