AOL reports third-quarter loss


3 Nov 2011

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Photo by Frank Gruber/Flickr

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Digital media company AOL has announced a net loss in its third-quarter earnings and a revenue decline.

AOL reported a US$2.6m loss for the quarter, compared to a net profit of US$171.6m in the same period last year.

"AOL grew global advertising by 8pc, driven by 28pc and 15pc growth in third-party network and global display advertising revenue, respectively, substantially closing the gap to revenue and eventual profit growth," said Tim Armstrong, chairman and CEO.

"We continue to build strong consumer experiences as we execute our strategy to build the premium branded media company for the internet. Our share repurchases underlie our belief in the value of AOL and our strategy."

Despite the increase in ad revenue, overall revenue declined 5.8pc to US$531.7m, the result of a 22pc drop in subscriber revenue and a 15pc drop in other revenues.