AOL Inc. (AOL:US), owner of the Huffington Post and TechCrunch, rose the most since May after an increase in advertising sales and a one-time gain on a patent sale helped the company return to a profit in the second quarter.
AOL advanced 5.4 percent to $28.97 at 10:02 a.m. in New York, after earlier gaining 5.7 percent for the biggest intraday jump since May 9. The stock had advanced 82 percent this year through yesterday.
Net income was $970.8 million, or $10.17 a share, compared with a loss of $11.8 million, or 11 cents a share, a year earlier, the New York-based company said today in a statement. Excluding some items, per-share profit was 23 cents, in line with analysts’ average estimate (AOL:US) in a Bloomberg survey.
Since the Web portal was spun out of Time Warner Inc. (TWX:US) in 2009, Chief Executive Officer Tim Armstrong has been trying to transform AOL into an ad-based publishing business. The company bought the Huffington Post for $315 million last year and invested as much as $300 million in Patch, a local-news division that Armstrong sees commanding up to $50 million in sales this year.
The company booked a $945.8 million gain in the second quarter on the sale of patents. Sales dropped 2 percent to $531.1 million. Analysts had estimated $519.2 million, according to Bloomberg data.
Global display advertising rose 1.7 percent to $139.9 million, while the U.S. portion was little changed. Total advertising improved 5.9 percent to $337.8 million.
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