NEW YORK (AP) — AOL Inc. posted a sharp profit decline in the third-quarter Tuesday due to restructuring charges and a write-down related to its Patch news service.
But revenue increased 6 percent thanks to strong advertising and shares jumped almost 8 percent in early trading.
The company earned $2 million, or 2 cents per share, in the July-September period. That's down 91 percent from $20.8 million, or 22 cents per share, in the same period a year earlier. The latest quarter's results include restructuring charges of $19 million and impairment charges of $25 million related to Patch. Excluding one-time items, AOL would have earned 55 cents per share in the latest quarter, above analysts' expectations.
Revenue rose 6 percent to $561.3 million from $531.7 million.
Analysts, on average, were expecting earnings of 49 cents per share on revenue of $548.8 million, according to a poll by FactSet. Analysts typically exclude one-time items from their estimates.
AOL's advertising revenue was $386 million, up 14 percent from $340 million. Subscription revenue from AOL's aging dial-up service continued to decline, as expected. It fell 7 percent to $161.6 million from $173.5 million.
Shares of AOL Inc., based in New York, rose $2.91 to $41.65 in morning trading. The stock has traded in the 52-week range of $29.16 to $43.93.