AOL (NYSE:AOL) posts earnings before charges of $0.16 per share. With charges and without tax credits reported net income for the quarter is $18.6 million, or $0.08 per diluted share. Revenue is up 54% $693.64 million with 17% of revenue coming from marketing, advertising, commerce and other revenues.
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Despite the results, which seem mostly favorable, AOL gets downgraded to hold from buy by Prudential today, on valuation. In related news AOL agrees to acquire struggling Internet TV outfit NetChannel’s assets, terms undisclosed but probably a firesale.
Interesting note: while Microsoft’s WebTV gains market share in the hybrid Internet TV space, cable firms seem to be lagging the opportunity. All they need is a small add-on box to the current cable box and instant Internet TV is born to millions today, not in the future but right now. Does AOL need a cable partner?
Excite (NASDAQ:XCIT) plays catch-up in teaming up with a telco to offer Web content and guides to the access provider’s dial-up. Inks a deal announced today with AT&T (NYSE:T), similar to rival efforts by MCI-Yahoo and AT&T-Lycos. These deals could hamper growth at Mindspring (NASDAQ:MSPG) and Earthlink (NASDAQ:ELNK) which likely are not as well known brands as the search and navigation services. Translation: have the stand-alone ISPs peaked?