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AOL Reports Q3 Profit Loss; 6 Percent Drop in Revenue

AOL showed a quarterly loss after their dial-up subscription business decreased.

Even though the third quarter indicated a rise in advertising revenue, this was not enough to cover the 6 percent drop in total revenue of the company, which was about $531.7 million.

According to a Thomson Reuters report, analysts were expecting $524 million in revenue. AOL was created out of Time Warner Inc. after a decade long partnership.

AOL witnessed decline of subscription revenue from 22 percent in this quarter to $192 million. The company reported a net loss of $2.6 million in the third quarter which is 2 cents a share on $531.7 million revenue.

Wall Street, however, expected 6 cents a share loss on revenue which is $524 million.

The company is presently focusing on regaining their status as one of the most well-known online platforms for attracting online advertising revenue from consumer packaged product manufacturer and auto companies.

Tim Armstrong, CEO of AOL said, "The trajectory of the results shows where we were from a year ago in a pattern of advertising growth. This reflects continued execution of our strategy....." as reported (opens in new tab)by ZDNet.