AOL posts profit in 'milestone' quarter

Jul 25, 2012
AOL posts a profit for the second quarter of $970.8 million, boosted by a big sale of patents, while citing signs of progress in turning around the struggling Internet firm.

AOL on Wednesday posted a profit for the second quarter of $970.8 million, boosted by a big sale of patents, while citing signs of progress in turning around the struggling Internet firm.

The profit was the result of a billion-dollar deal announced in April to sell a large number of patents to Microsoft, but the company said the operating results showed improvement.

"Today's results represent a significant milestone for AOL," chairman and chief executive Tim Armstrong said, noting that the company for the first time in four years posted operating earnings excluding decpreciation and amortization.

"The strong results and consumer performance we announced today are clear signs our strategic and operating efforts are translating into significant financial progress."

AOL, formerly known as , has been struggling since the of its leadership as an Internet subscription service, and has been seeking to become a more diversified Web firm.

It fused with news and entertainment giant Time Warner in 2001 at the height of the dotcom boom in what is considered one of the most disastrous ever.

It was spun off by Time Warner in December 2009 into an independent company and has been struggling since then as it tries to focus on media and news.

AOL's declined two percent, its lowest rate of decline in seven years, to $531 million. grew six percent, its fifth consecutive quarter of year-over-year growth.

Subscription revenues fell 12 percent, the lowest rate of decline in five years.

The research firm eMarketer said AOL's share of US online ad revenues is declining. The company's share of online ad revenues in the US declined to 2.8 percent in 2011, down from 3.4 percent in 2010. The group predicts 's share of revenues will fall further to 2.4 percent this year.

Explore further: Out-of-patience investors sell off Amazon

add to favorites email to friend print save as pdf

Related Stories

AOL launches $400 mn share buyback

Jun 28, 2012

AOL on Thursday launched a $400 million stock buyback in the latest move aimed at improving shareholder value at the Internet and media group.

AOL says to sell 800 patents to Microsoft for $1.0 bn

Apr 09, 2012

AOL announced plans to sell more than 800 patents to Microsoft in a $1.056 billion deal giving the struggling Internet pioneer a needed cash injection as it seeks to fend off pressure from shareholders.

AOL execs, some analysts see changes taking hold

Aug 04, 2010

(AP) -- AOL Inc. reported a $1 billion-plus second-quarter loss and tumbling revenue, yet the dismal-sounding numbers appear to belie a more positive reality: The troubled Internet company is actually chugging ...

AOL posts higher 4Q net income but revenue slides

Feb 02, 2011

(AP) -- Internet company AOL Inc. says its fourth-quarter net income grew from a year-ago period weighed down by hefty restructuring costs, but revenue fell sharply on weak advertising sales. The company sought to reassure ...

Yahoo!, Microsoft, AOL in ad deal

Nov 08, 2011

Yahoo!, Microsoft and AOL unveiled a joint advertising agreement on Tuesday designed to take on Internet giant Google.

Recommended for you

Out-of-patience investors sell off Amazon

18 hours ago

Amazon has long acted like an ideal customer on its own website: a freewheeling big spender with no worries about balancing a checkbook. Investors confident in founder and CEO Jeff Bezos' invest-and-expand ...

States ascend into the cloud

Oct 24, 2014

Seven years ago, the state of Delaware started moving computer servers out of closets and from under workers' desks to create a consolidated data center and a virtual computing climate.

Microsoft drops Nokia name from smartphones

Oct 24, 2014

Microsoft said Friday it was dropping the Nokia name from its Lumia smartphones, rebranding following the acquisition earlier this year of the Finnish group's handset division.

Amazon's loss makes holidays a question mark

Oct 24, 2014

Amazon's trademark smile icon is becoming more of a grimace. The world's largest online retailer reported a wider third-quarter loss than analysts expected and gave a disappointing holiday forecast.

User comments : 0