AOL Posts Small Q4 Profit

February 05, 2010

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AOL Posts Small Q4 Profit

AOL's fourth quarter profit and revenue beat Wall Street's forecast, but the company said its revenue from subscriptions and online search advertising would decline in the coming months.

AOL was spun off by Time Warner in December and is trying to reposition itself as an online content and advertising company under chief executive Tim Armstrong, formerly a Google executive.

AOL had a fourth quarter net profit of $1.4 million compared with a net loss of $1.96 billion in the same quarter a year ago.

AOL advertising revenue feel by eight percent in the fourth quarter to $ 471.6 million while subscription revenue declined by 28 percent to $307.4 million. Total revenue was down 17 percent to $809.7 million.

"We have made significant progress in support of the long-term vision we see in the future of AOL, but today's results continue to reflect the need for our focus and execution on the work required in the turnaround of the Company," said Tim Armstrong, Chairman and Chief Executive Officer.

"2009 marked the closing of an important chapter in AOL's history and the opening of a new chapter that we are passionately pursuing. We have a clearly defined strategy, and we enter 2010 incredibly focused on day-to-day execution."

Other highlights from the earning report include:

Q4 revenue declines reflect continued attrition in the subscriber base, leading to declines in subscription and search & contextual revenue. While AOL Properties global display advertising revenue declined 3%, AOL Properties domestic display advertising revenue grew 1%, its first quarter of year-over-year growth in eight quarters.

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