AOL, Inc. (NYSE:AOL) shares rose after the company reported a fall in first-quarter revenue, which missed analysts’ estimates, while net income came ahead of the Wall Street’s projections.The company posted net income of $21.1 million or $0.22 per share, up from a year ago profit of $4.7 million or $0.04 per share, well ahead of analysts’ estimates of 7 cents a share.
Advertising revenue grew 5% to $330.1 million from $313.7 million, helped by higher international display advertising sales and third-party network ads. Display ads are the Internet advertisements people commonly see on Web pages, as opposed to the search ads that Google Inc. is best known for. These are more profitable for AOL than the third-party ads, so they're a more closely watched metric.Subscription revenue dropped 15% to $182.1 million. Churn, or the%age of customers cancelling services, fell to 2% from 2.5% a year earlier.Subscription revenue from AOL's old dial-up Internet business declined 15% to $182.1 million from $215.4 million.
Restructuring costs dropped sharply to $7.4 million from $27.8 million. General and administrative expenses fell too, to $96.2 million from $120.7 million a year earlier.
"AOL is a much stronger company today than a year ago," Chairman and CEO Tim Armstrong said in a statement, adding that the company began the year by increasing ad revenue and lowering expenses.Shares of AOL jumped 2.81% to 26.33 on over 2.61 million shares. The stock is up over 74% so far this year.AOL Inc. (AOL) is a global Web services company with a range of brands and offerings and a global audience. The Company’s business spans online content, products and services, which it offers to consumers, publishers and advertisers. Its business operations are focused on AOL Properties and Third Party Network
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