AOL rallies on results surprise

Nov 06, 2012

AOL said Tuesday it made a profit of $20.8 million in the third quarter as the struggling Internet firm stemmed a seven-year decline in revenues.

AOL shares rallied some 10 percent in early trade on the results for the firm which has been seeking to reinvent itself as a media and news provider after losing most of its Internet subscriber base.

The profit amounted to 22 cents a share, better than the average analyst estimate of 17 cents.

Revenue, meanwhile, rose seven percent to $340 million, ending a long decline.

"We just reported the best relative revenue performance in seven years and the second consecutive quarter of year-over-year profit growth, exceeding our expectations," said Tim Armstrong, chairman and chief executive.

"We have positioned AOL for growth in 2013 and beyond with consumer and advertiser demand growing for our premium content and innovative products, video, services and ad formats."

AOL, formerly known as America Online, has been struggling since the collapse of its leadership as an , 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 mergers 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.

Rose Sandler, analyst at Deutsche Bank, called Tuesday's results "solid" and the "strongest quarterly results since being spun-out from Time Warner in 2009."

Sandler recommended the stock based on "compelling valuation combined with AOL's continued improving fundamentals, which have gone from weak-to-stable over the past two years, and are starting to inflect up in certain areas, evidenced by these ."

AOL operates a search portal, and operates news sites including The and TechCrunch. It owns Moviefone.com and has an advertising platform known as ProjectDevil.

Explore further: Taxi app Uber defies ban in Spain

add to favorites email to friend print save as pdf

Related Stories

AOL posts profit in 'milestone' quarter

Jul 25, 2012

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.

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 unveils buyback, special dividend

Aug 27, 2012

AOL said Monday it was launching a share buyback worth some $600 million and paying a special dividend as part of its plan to distribute proceeds from a billion-dollar patent sale.

AOL cutting over 900 jobs in US, India

Mar 10, 2011

Internet company AOL is cutting more than 900 jobs as it joins forces with The Huffington Post and seeks to reinvent itself as a major player in online news.

Newly single AOL posts 4Q profit, despite ad drop

Feb 03, 2010

(AP) -- AOL Inc., newly released from its fizzled marriage with Time Warner Inc., reported a modest profit for the fourth quarter on Wednesday, even as revenue from online advertising continued to fall.

Recommended for you

Taxi app Uber defies ban in Spain

11 hours ago

Smartphone car-ride service Uber vowed Friday to keep operating in Spain despite a ban following a lawsuit by taxi drivers and said it would fight the case in court.

Sony film mess reflects gadgets-entertainment gap

19 hours ago

Sony's iconic gadgetry and the star appeal of Hollywood may have appeared to be a perfect match when the electronics giant bought Columbia Pictures in 1989. A quarter century later, it's apparent that Sony ...

LivingSocial's new CEO eyes an experience-oriented future

Dec 24, 2014

Some big challenges lie ahead for LivingSocial, the online marketplace known for its daily deals and discounted prices on restaurants, spas and local activities. But that's where the company's new chief executive, Gautam ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.