AOL Profit Up as Sales Surge 40% in Quarter

America Online Inc. said it more than doubled its fiscal fourth-quarter profit compared with last year, easily beating Wall Street estimates as revenue surged 40%.

The Dulles, Va.-based company Thursday reported net earnings of $338 million, or 13 cents per share, for the quarter ended June 30. That is up 115% from $157 million, or 6 cents per share, in the year-ago quarter. Analysts surveyed by First Call/Thomson Financial had pegged earnings at 11 cents per share.

“This has been a record-breaking year for America Online, and we finished on a strong note,” said AOL Chairman and Chief Executive Steve Case.

AOL, the world’s largest Internet provider, plans to merge with Time Warner, the world’s largest media company. Federal regulators are still reviewing the proposed $136-billion merger and will hold a hearing at the Federal Communications Commission Thursday.

Revenue for the quarter was $1.93 billion, up from $1.38 billion for its fiscal fourth quarter last year.

Despite the positive results, shares of AOL, which were up $2.50 to close at $61.75 in regular New York Stock Exchange trading, fell $2.75, or 5%, in after-hours trading.

For its fiscal year ended June 30, AOL reported net earnings of $1.2 billion, or 48 cents per share, up from $754 million, or 30 cents per share, for 1999. That compares with a 1999 net income of $391 million.