AOL Reports Profit in 3rd Quarter
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America Online Inc. on Monday reported a $2.6-million third-quarter profit that represents a big drop from a year ago but beat analysts’ forecast for a loss as the world’s largest online service was helped by lower marketing expenses.
Dulles, Va.-based AOL said net income for its fiscal third quarter ended March 31 equaled 2 cents a share and represented an 83% fall from $15.13 million, or 14 cents a share, in the year-ago quarter. Wall Street had predicted a loss of 7 cents a share for the latest quarter, according to analysts.
AOL said that, as planned, it held its membership relatively flat at about 8 million subscribers while it worked to improve access for existing members.
AOL’s revenue climbed to a record $456.2 million, up 46% from $312.3 million a year ago. The company reported its earnings after markets closed. Its shares rose $4.25 to close at $$51.50 on the NYSE.
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