Business Briefs

Reported by Star-Bulletin staff & wire

Wednesday, January 27, 1999

AOL's net soars; splits stock 2-for-1

American Online Inc. announced a two-for-one stock split today and reported quarterly earnings that beat Wall Street expectations.

The No.1 online service, said its fiscal second-quarter profit more than quadrupled to $88 million, or 17 cents a share, vs. $19.6 million, or 4 cents a share, in the quarter ending Dec. 31, 1997.

The latest results beat the estimate of 14 cents a share, the average of analysts surveyed by First Call Corp. Revenue rose 62 percent to $960 million from $592 million.

The Dulles, Va.-based company said its membership rose 12 percent to more than 15.1 million in the latest quarter, according to Bloomberg News. The stock split, the second for AOL since November and sixth since 1994, was set for Feb. 22 for shareholders of record Feb. 8.

AT&T pay plan links wireless, wireline

NEW YORK -- AT&T Corp., the No. 1 U.S. long-distance telephone company, said today it plans to offer customers a single rate and a single bill for both wireless and traditional wireline calls. AT&T said the plan, dubbed AT&T Personal Network, would allow subscribers to use their cellular and landline phones interchangeably at a rate of 10 cents a minute plus a monthly fee of $29.99.

Corporate earnings

Compaq Computer Corp., the world's largest maker of personal computers, said today its fourth-quarter profits rose 14 percent, topping Wall Street's expectations.

Walt Disney Co.'s net fell 18 percent in its fiscal first quarter, slightly worse than analysts' expectations.

Bell Atlantic Corp., the No. 1 U.S. local phone company, said fourth-quarter profit rose 12 percent as the company sold more high-profit services like call waiting and cut costs related to its Nynex Corp. acquisition. The results matched expectations.

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See expanded coverage in today's Honolulu Star-Bulletin.
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