NEW YORK (AP) — Internet company AOL is reporting a smaller net loss for the second quarter even though revenue fell, because last year’s quarter was weighed down by a huge accounting charge.
But advertising revenue grew for the first time since 2008, in what CEO Tim Armstrong said reflects “another meaningful step forward in the comeback of the AOL brand.”
AOL Inc. said Tuesday that it lost $11.8 million, or 11 cents per share, in the three months that ended June 30. A year ago it lost $1.06 billion, or $9.89 per share. That was due largely to a write-downs of $1.41 billion for the declining value of its assets and the sale of social networking site Bebo.
AOL says its revenue fell 8 percent to $542.2 million from $592.2 million. Analysts had expected lower revenue of $535.1 million.
Advertising revenue grew 5 percent to $319 million, helped by AOL’s acquisition of Huffington Post.
Subscription revenue fell 23 percent to $201.3 million as fewer people paid to access AOL’s waning dial-up service. AOL has been working to make up for the decline in this business by growing its online ad revenue.