AOL Profit Exceeds Estimates

America Online Inc. reported higher-than-expected profit for its fiscal third quarter as the online service added subscribers and boosted revenue from a slew of marketing and electronic-commerce ventures. The Dulles, Va.-based firm also said it will buy closely held NetChannel Inc., which makes an Internet service that runs over TVs. Terms were not disclosed. AOL said it will take a charge of $20 million in the fourth quarter for the purchase. AOL earned $39 million, or 16 cents a diluted share, for the third quarter, excluding charges, compared with a restated loss of $4.7 million, or 2 cents, a year ago, exceeding estimates of 12 cents. Revenue climbed 54% to $693.6 million. About 1.15 million members joined AOL, bringing its subscriber base to about 11.9 million, from more than 10.7 million. AOL shares fell $1.50 to close at $88 on the NYSE. Earnings were reported after the close of trading.