AOL reports higher revenue, lower profits, in Q1 report
The Internet company AOL today reported first quarter earnings, beating estimates for revenue by growing advertising by 16 percent, but reporting that its operating income had fallen 52 percent to $24.2 million.
The company blamed pre-tax restructuring charges of $12 million and a $10 million asset impairment charge, as well as higher traffic acquisition costs.
While the membership group continues to see subscriptions fall – 7 percent in the latest quarter – the group still is the most profitable part of the company.
AOL’s stock fell today before the release of the earnings report, falling 20.62 percent to $34.85, down just over 9 points. In after hours trading the stock is virtually unchanged.