It was thought that the unit would post $66 million in operating profit in 2013 on $165 million in revenue, but it didn’t. Analysts say that it probably can survive losing cash this year, but really does have to pull finger out and start making some dosh next year.
There are a lot of magazines in this particular group The Huffington Post, TechCrunch, Moviefone and Patch. This year they made an adjusted operating income before depreciation and amortization (OIBDA) of $4.6 million for the nine months ending in September. For the same period in 2012, it reported a loss of $41.6 million.
That means that the Huffington Post will post a loss of about $6 million this year on $100 million in revenue. However AOL says that the Post is losing money because they made a deliberate decision to divert advertising revenue back into the business to help it grow, and that the website would be profitable otherwise.
The company said that the Post's loss is narrowing and he expects the business to turn profitable next year, helped by the growth of global editions, video, and lifestyle conferences.