New York – Despite a sharp drop in first-quarter profits,
shares of AOL (NYSE: AOL) rose as much as 10% early Wednesday after the company posted
larger-than-expected revenue.
Hurt by restructuring charges, AOL reported net
income of $4.7 million for the period, down from $34.7 million a year ago.
Revenue also fell 17% to $551.4 million, though display ad sales notably grew
by 4%, including 11% in the U.S. market.
"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," said Tim Armstrong, the CEO of
AOL.
The rise in display ad revenue was helped by the company’s recent
acquisitions of the Huffington Post and technology blog TechCrunch.
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