AOL's Slide Continues: Sales Down 24%

timarmstrong speaking tbi

While Yahoo was betting the next decade on a deal with Microsoft, AOL (TWX) had more bad news this morning, ahead of its spinoff from Time Warner: Sales were down even more in the second quarter than the first.

This fits the story we’ve heard several times in the last few months: That things at AOL are worse than Tim Armstrong imagined, and it’s going to be even harder than anticipated to turn things around.

Overall sales declined 24% year-over-year to $804 million, and operating income fell 28% to $165 million. That’s a worse decline in sales than AOL reported in the first quarter, when revenue fell 23%.

AOL’s dialup subscription business did the worst, down 27%, but that was expected. Not as good: The 21% year-over-year decline in total advertising.

AOL Media revenues were down 19% year-over-year, and third-party network sales were down 26%. Search ad revenue from Google — AOL’s only ad category that grew last year — was down 17%, according to paidContent’s Staci Kramer, who is tweeting notes from the Time Warner earnings call.

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