AOL in the first quarter net profit of 34.7 million U.S. dollars profit down 58%

SAN FRANCISCO April 28, according to foreign media reports, Internet company AOL Wednesday announced that due to advertising and user fees revenues fell with restructuring costs, the company's first quarter profit fell 58%. Affected by this negative news, the company's shares slumped 3.6%.

The company announced Wednesday reported a first quarter profit 34,700,000 U.S. dollars, 32 cents a share. Same period last year, the company earnings 82.7 million U.S. dollars, 78 cents a share. As subscription revenues decline 28% pay, the company's first-quarter revenue fell 23% to 664.3 million U.S. dollars. First-quarter profit and revenue were lower than analyst expectations, analysts had expected, first quarter profit of 70 cents per share on revenue of 6.79 billion.

First quarter advertising revenue fell 19% to 354.3 million U.S. dollars, of which 13% decline in display advertising revenue, while the search and contextual advertising (Contextual Ads) revenue fell 27%. AOL also said the company to 187.5 million U.S. dollars to the Russian investment agency Digital Sky Technologies Ltd. Sold the ICQ instant messaging services. AOL said earlier this month plans to sell, or close to its social networking site Bebo, the social networking site about two years ago, AOL bought 850,000,000 U.S. dollars.

AOL Time Warner late last year, separate from the parent company. AOL, the Internet pioneer, when it provides dial-up Internet access services, but due to the development of Internet technology toward a more rapid rise to consumer Internet access services, leading to shrinkage of the original dial-up business.

AOL tried to reshape their own content and advertising business, operations similar to the technology blog Engadget, and a financial Web site WalletPop the same site. This restructuring process has not been easy, the company said first-quarter restructuring hurt revenue.

Compared to Google in the first quarter revenue rose 23%, while Yahoo's first-quarter revenue growth of 1%. Most of the company’s revenues come from online advertising.