AOL Finally Posts A Profit, So Why Is No One Happy?
AOL fans will be happy to know that everyone's favorite dial-up access provider is finally in the black. For the fourth quarter of this year, AOL posted a profit of $1.4 million, considerably better than a year ago when the company reported a whopping loss of $1.9 billion.
The company's humble earnings, which translate to about a penny per share, are a stark contrast to the internet powerhouse that AOL once was. Gone are the days of dial-up, and AOL is in a transition from being a subscription-supported internet provider to becoming an advertising-supported content site.
But the picture is far from perfect: AOL's overall revenue fell 17% to $809.7 million and subscriptions tanked 28% to $304.7 million. And the all-precious advertising revenue? That also dropped 8% to $471.6 million as AOL struggles against leading contenders like Google and Yahoo.
So unless everyone in the world goes back to dial-up, AOL's woes are far from over.