AOL Time Warner, the world’s largest media company, has substantially reduced its full-year forecasts for the America Online (AOL) internet service provider division, citing the continued softness in business’ advertising revenues as the main cause.
AOL’s full-year revenues are now expected to be $1.7 billion, down from the previous forecast of $1.8 billion to $2.2 billion. There is also the risk of an additional 5% downside to this forecast.
The figures come as analysts point toward longer-term problems for the online advertising industry. The Financial Times quotes a Kaufman Brothers analyst as predicting that the online market will not firm up for another five to ten years.
