AOL et 2006 : morceaux choisis

• ¤ Enabling Google Talk and AIM instant messaging users to communicate with each other provided certain conditions are met. Because this agreement does not provide for any revenue share or other fees, there will be no accounting for this arrangement.
• ¤ Major competitors include Yahoo! Inc., Microsoft Corporation, Google, IAC/ InterActiveCorp and eBay Inc. In addition, new properties such 18 as YouTube, MySpace and Facebook that are able to gain large numbers of visitors and generate significant amounts of activity also compete with AOL.
• ¤ In 2006, subscription revenues represented approximately 74% of AOL’s total revenues, and advertising revenues represented approximately 24% of AOL’s total revenues
• ¤ Advertising.com, which generates almost a quarter of AOL’s advertising revenues
• ¤ In addition, Google agreed to invest $1 billion to acquire a 5% equity interest in a limited liability company that owns all of the outstanding equity interest in AOL.
• ¤ [Google] Providing AOL $300 million of marketing credits for promotion of AOL’s content on Google-owned Internet properties
• ¤ On October 31, 2006, the Company completed the sale of AOL’s French access business to Neuf Cegetel S.A. for approximately $360 million in cash
• ¤ On December 29, 2006, the Company completed the sale of AOL’s U.K. access business to The Carphone Warehouse Group PLC (“Carphone Warehouse”) for approximately $712 million in cash
• ¤ On September 17, 2006, the Company announced an agreement to sell AOL’s German access business to Telecom Italia S.p.A. for approximately $870 million in cash (subject to a working capital adjustment), and to enter into a separate agreement to provide ongoing web services, including content, e-mail and other online tools and services, to Telecom Italia S.p.A. upon the closing of the sale
• ¤ For the year ended December 31, 2006, income of $27 million was attributed to minority interest, which primarily reflects Google’s share of the gain on the sales of AOL’s European access businesses net of restructuring costs at the AOL segment.[…] The increase related primarily to the 5% minority interest in AOL issued to Google in the second quarter of 2006, which includes Google’s 5%share in the $769 million of gains recognized by AOL on the sales of its France and U.K. access businesses
• ¤ In order for AOL to continue to improve its financial performance, AOL must increase its advertising revenues, as well as reduce its overall costs, in sufficient amounts and in a timely manner to coincide with or precede the continuing loss of subscribers to the AOL service and related subscription revenues[…]AOL made substantial cost reductions in 2006 related to marketing, network service, customer service and product development, and it intends to continue to identify and implement cost reductions. However, cost reductions may lead to employee distraction and morale problems, as well as difficulty in hiring or retaining necessary employees[…]Following the substantial cost reductions made prior to and during 2006, it may become increasingly difficult to identify and implement cost reductions in 2007 without adversely impacting AOL’s operational effectiveness.
• ¤ AOL expects to continue to reduce its costs of revenues, such as dial-up network and customer service, and selling, general and administrative costs.
• ¤ Significant Transactions and Other Items Affecting Comparability,” the 2006 results include $222 million in restructuring charges, primarily related to employee terminations
• ¤ In connection with this strategic shift, AOL undertook certain restructuring and related activities in 2006, including involuntary employee terminations, contract terminations, asset write-offs and facility closures. Additional restructuring and related activities of this nature are anticipated in 2007.
  

Source : 2006 Annual Report to Stockholders