AOL reported a continued fall in revenues for the fourth quarter, while profits improved. Revenues fell 26 percent from a year earlier to USD 596 million, with ad revenues down 29 percent to USD 331.6 million and subscription revenues falling 23 percent to USD 235.9 million. The ISP had 3.852 million subscribers at year-end, who generated ARPU of USD 18.12 per month. Adjusted OIBDA was up 12 percent to USD 149.4 million due a sharp fall in restructuring charges, and net profit jumped to USD 66.2 million from USD 1.4 million a year ago. The results were affected by a number of one-time items, including the restructuring charges in the year-earlier period, a release of foreign reserves, the gain on the Brightcove stake and a lower tax rate after impairment charges. The company also took a pretax charge of USD 13.6 million for a change in its agreement to sell ICQ to Mail.ru. The divestment has come under scrutiny by the US foreign investment committee CFIUS, and as a result AOL will have to provide certain network services to ICQ longer than expected in order to secure government approval. The charge is at the low end of projected losses from liability for providing the services, as outlined in the sale agreement.
