AOL Gains as Third-Quarter Earnings Beat Analysts’ Estimates
AOL Inc. (AOL), the Internet company that’s struggling to halt a sales slide, gained the most in almost two years after third-quarter earnings exceeded analysts’ estimates.
Profit, excluding some items, was 16 cents a share, New York-based AOL said today in a filing. Analysts predicted 10 cents, the average of estimates compiled by Bloomberg. AOL climbed 13 percent to $15.02 at the close in New York, the most since the company was spun off from Time Warner Inc. in December 2009.
The Internet pioneer is aiming to increase earnings from online advertising as its profitable Internet-access business continues to decline. Struggling to compete against Internet companies Google Inc. (GOOG) and Facebook Inc., AOL has repositioned itself as an advertising-based news and content company.
AOL’s global advertising revenue increased 8 percent to $317.7 million, the company said. Display advertising increased 15 percent to $136.7 million, and third-party network advertising increased 28 percent to $95.9 million.
AOL has lost almost $800 million since it was spun off from Time Warner Inc. (TWX) in 2009.
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