Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

http://www.businessweek.com/ap/2012-11-06/aol-posts-3q-profit-as-ad-revenue-increases

AP News

AOL posts 3Q profit as ad revenue increases


NEW YORK (AP) — AOL Inc. posted a third-quarter profit on Tuesday, reversing a loss a year earlier, and its advertising revenue grew for the sixth straight quarter.

Results beat Wall Street's expectations and AOL's shares rose 4 percent just before the opening bell.

The Internet company earned $20.8 million, or 22 cents per share, in the July-September period. Last year, it posted a loss of $2.6 million, or 2 cents per share, in the same period.

Revenue was $531.7 million, the same as a year ago. Advertising revenue grew 7 percent to $340 million, but the company's dial-up Internet business continued to decline.

Analysts, on average, were expecting earnings of 18 cents per share on revenue of $519.7 million, according to a poll by FactSet.

It was the best quarterly revenue growth in seven years, and results topped company expectations, said CEO Tim Armstrong.

A Web pioneer back in the 1990s, AOL has been shedding dial-up subscribers for years. Its business now relies on advertising, and it has tried to make its websites more appealing to advertisers by adding popular content and drawing more visitors. To do so, it bought The Huffington Post news website in 2011 and technology blog TechCrunch a year earlier.

New York-based AOL's stock added $1.42 to $37.23 in electronic trading before the market open.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus