AOL reported its first quarter profit down 86 percent to US$4.7 million. Revenue was down 17 percent to $551.4 million, Bloomberg reported.
However, the company’s turnaround plan seems to have started paying off.
According to Chief Executive Officer Tim Armstrong, AOL is building an online content business based on advertising revenue because customers have abandoned its dial-up Web-access service for broadband rivals. “Today represents an important milestone in the turnaround of AOL as global display revenue grew for the first time since the fourth quarter of 2007,” he said in a statement.
Subscription revenue dragged dial-up Internet service down 24 percent to $215.4 million, while overall advertising revenue declined 11 percent to $313.7 million.
Search and contextual ad revenue decreased 21 percent to $95.8 million, but display ad revenue was up four percent to $130.5 million, and gained 11 percent in the United States, AFP reported.