AOL Swings to Third-Quarter Loss
The online company, led by CEO Tim Armstrong, has focused on turning around its financials and lauded its lowest revenue decline in five years driven by its second consecutive quarter of global ad growth.
Online company AOL on Wednesday reported a third-quarter loss of $2.6 million, compared with a year-ago profit of $171.6 million. The latest period saw lower revenue and included a $7.1 million restructuring charge.
Revenue fell 6 percent to $531.7 million, its lowest decline in five years driven by its second consecutive quarter of global advertising growth. In the year-ago quarter, revenue had declined 27 percent.
"AOL grew global advertising by 8 percent, driven by 28 percent and 15 percent growth in third party network and global display advertising revenue, respectively, substantially closing the gap to revenue and eventual profit growth," said AOL chairman and CEO Tim Armstrong. "We continue to build strong consumer experiences as we execute our strategy to build the premium branded media company for the Internet."
Management also said that ad trends improved starting in August, and Armstrong once again said that the acquisition and integration of the Huffington Post has worked out well.
AOL recently unveiled a big push into premium online video content with such nig-name partners as Mark Burnett, Heidi Klum and Michael Eisner.