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AOL shares jump on advertising revenue | AOL shares jump on advertising revenue |
(about 4 hours later) | |
Shares in AOL have jumped 22% after the US internet firm reported a sharp rise in advertising revenues. | |
Advertising sales jumped 7% to $340m (£212m), boosting net profit for the third quarter to $20.8m, compared with a loss of $2.6m a year ago. | Advertising sales jumped 7% to $340m (£212m), boosting net profit for the third quarter to $20.8m, compared with a loss of $2.6m a year ago. |
Overall revenue was flat at $531.7m, the first time year-on-year revenue has not fallen in seven years. | Overall revenue was flat at $531.7m, the first time year-on-year revenue has not fallen in seven years. |
The firm has struggled to reinvent itself as a media and news group since its spin off from Time Warner in 2009. | The firm has struggled to reinvent itself as a media and news group since its spin off from Time Warner in 2009. |
'Right direction' | 'Right direction' |
"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 group chief executive Tim 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," said group chief executive Tim Armstrong. |
Analysts said the results showed the company was finding its feet again after a difficult three years. | Analysts said the results showed the company was finding its feet again after a difficult three years. |
"Things look great," said Andre Sequin from RBC Capital Markets. | "Things look great," said Andre Sequin from RBC Capital Markets. |
"This company is continuing to make steps in the right direction." | "This company is continuing to make steps in the right direction." |
The company is still losing subscribers, however, albeit at a slower pace. | The company is still losing subscribers, however, albeit at a slower pace. |
Subscriptions during the quarter fell by 10% against a year earlier, an improvement on the 22% fall recorded in the third quarter of 2011. | Subscriptions during the quarter fell by 10% against a year earlier, an improvement on the 22% fall recorded in the third quarter of 2011. |
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