AOL LatAm’s revenue falls in Q1

MIAMI — America Online Latin America’s revenue fell 12 percent in its first quarter of 2003, a drop the company blamed partly on the region’s weak online advertising market and on currency devaluations.

AOL Latin America’s revenue fell to $16.3 million in the quarter, ended March 31, from $18.2 million in 2002’s first quarter, the company announced Tuesday.

Subscription revenue came in at $15 million, down 4.7 percent, while advertising and e-commerce revenue was $1.3 million, down almost 46 percent.

Despite the revenue decrease, the company’s net loss shrunk by almost 46 percent to $31.2 million, or $0.25 per share, compared with a net loss of $57.6 million, or $0.86 per share, in 2002’s first quarter.

This is the eleventh straight quarter in which AOL Latin America has reduced its net loss. It credits its efforts to cut costs and expenses with allowing it to narrow its net loss once again.

The company, which offers Internet access and content in Brazil, Argentina and Mexico, and serves members of the AOL-branded service in Puerto Rico, saw its membership rolls reduced by almost 33 percent compared with 2002’s fourth quarter, ended Dec. 31, 2002, as the company continues to remove members who are inactive or who fail to pay on time.

AOL Latin America ended 2003’s first quarter with 795,000 members, down from 1.18 million in 2002’s fourth quarter. However, the Fort Lauderdale-based company said the drop in membership had no material impact on revenue or expenses during the quarter.

AOL Latin America’s two biggest shareholders are AOL Time Warner’s America Online subsidiary and Venezuela’s Cisneros Group of Companies. AOL Latin America launched its first service in November 1999.

AOL Latin America made its earnings announcement Tuesday morning before the financial markets opened in New York. Reaction to the first quarter results was negative, as the stock (AOLA) closed down almost 12 percent to $0.52 in the NasdaqSmallCap market.