AOL’s dial-up internet and advertising divisions are to be restructured into separate divisions

Time Warner reported that AOL revenue fell 16 percent to $1.1 billion in the second quarter due to a 29 percent decline in subscription revenue.

AOL operating income fell 36 percent to $230 million.

Online advertising revenue was up 2 percent in the second quarter. This was helped by paid search and third party ads.

Analysts suggested that it was likely that the separation into two divisions, to occur by early 2009, would lead to their sale.

So the portals are diminishing in favour while search traffic continues to increase.

This is good news for the 10 million businesses listed in our USA Business Directory, particularly since we follow the web 2.0 model and provide the business listing at no cost.