AOL (NYSE:AOL) reported a drop in revenue in the second quarter but was still able to post a lower net income loss due to the company having to pay a huge accounting charge in the same quarter last year.
The internet company said that for the three month period it lost $11.8 million, or 11 cents per share, much lower than the $1.06 billion loss, or $9.89 per share, that it suffered last year. Last year loss was mostly due to a $1.41 billion accounting charge that wrote off the company’s declining value of its assets as well as the sale of Bebo.
Excluding special items the AOL would have earned 4 cents a share.
Revenue dropped in the quarter to $542 million from $592 million, analysts has expected the company to report revenue of $535 million.
It shareholders where not impressed tuesday morning, leading to a huge sell off which sent the company’s stock price over 20 percent lower to $11.80 a share, its lowet point in over a year.
Investors where not happy to see a weaker than expected advertising revenue which only grew by 5 percent to $319 million. Its subscription revenue also fell by 23 percent to $201 million.
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