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AOL reports $353 mil quarterly loss

Published on .

America Online reported a $353 million loss for the quarter ended Sept. 30, the result of a one-time charge of $385 million to account for a change in how it writes off subscriber acquisition expenses. The company also reported that revenues increased 77% to $349.9 million, from $197.9 million in the previous quarter.

Other revenues--including commerce and advertising--rose 24% to $38.8 million. AOL said it currently has 50 advertisers, with eight committing to spend $1 million or more during the 1997 fiscal year. AOL also said it now has 6.9 million subscribers, with 400,000 net new subscibers added during the quarter.

Separately, Cyber Promotions, Philadelphia, has asked a U.S. District Court for an injunction against America Online, which offers e-mail blocking software that Cyber claims is a violation of federal antitrust law. Both AOL and CompuServe filed motions against Cyber earlier this year, alleging Cyber software was used irresponsibly to harass members of those online services with electronic junk mail. Cyber markets an inexpensive e-mail harvesting software called Floodgate that facilitates mass electronic mailings.

Copyright November 1996, Crain Communications Inc.

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