Time Warner (TWX) AOL: Divisional P&L

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:

  1. AOL’s subscription business generates at least 50% EBITDA margins
  2. AOLs subscription business accounts for a significant majority of EBITDA (70%+ in our model)
  3. 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…

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