AOL Swings to Third-Quarter Profit
Online company AOL on Tuesday said it swung to a third-quarter profit as it continued to make financial progress.
The company, led by chairman and CEO Tim Armstrong, posted earnings of $20.8 million, compared with a loss of $2.6 million in the year-ago period.
Revenue was unchanged at $531.7 million. Global advertising revenue rose 7 percent - with 18 percent growth in international markets outperforming a 3 percent U.S. decline, offset by a 10 percent decline in subscription revenue. The company said overall that meant its best year-over-year revenue performance in more than seven years.
The earnings and revenue figures exceeded Wall Street expectations.
Said Armstrong: "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. 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.”