America Online Latin America's first-quarter loss has risen to $85 million, though the loss was smaller than expected, Reuters reports.
Revenues rose fivefold to $12.8 million from $2.6 million a year-earlier and up 61 percent from the fourth quarter. Its subscriber base grew to 647,000, including those participating in free trial promotions, from 449,000 in the fourth quarter. AOL-LA attributed much of its subscriber growth to its joint AOL Brazil service with Banco Itau, which was launched in January and promotes AOL, the world's largest Internet company, to the bank's 7.6 million banking customers, and aggressive marketing efforts in Brazil.
Wall Street analysts expected the Web company, backed by AOL Time Warner and Venezuela's Cisneros Group, to post a loss with the range of 33 cents a share to 38 cents a share, with a consensus estimate of a loss of 35 cents a share, according to Thomson Financial/First Call. Shares of AOL-LA closed Monday at $5.20. Its shares have fallen more than 40 percent from its public offering price of $8 in August.