A reader asked that we publish the estimated divisional P&L for AOL’s Subscription and Advertising businesses that we referred to in yesterday’s post (AOL: Mass Layoffs All But Confirmed). Here it is:
The analysis makes the following assumptions:
- AOL’s subscription business generates at least 50% EBITDA margins
- AOLs subscription business accounts for a significant majority of EBITDA (70%+ in our model)
- AOL’s “Other” revenue contributes about $30 million of EBITDA per quarter.
In other news, we received an amusing response to our observation that morale at AOL’s Dulles headquarters is poor:
not just Dulles, but in Europe too… Employees still ask themselves (cheeky, aren’t they) why the results of the Employee Opinion Survey 2007 never got published…