AOL Inc. says its first-quarter net income dropped sharply as the internet company continued to see a drop in advertising and subscription revenue.
Even so, the company sought to reassure investors that its turnaround was on its way by pointing to a growth in display advertising sales for the first time since 2007.
AOL said Wednesday that it earned $4.7 million, or 4 cents per share, in the latest quarter, down from $34.7 million, or 32 cents per share, a year earlier.
Revenue fell 17% to $551 million from $664 million.
Analysts polled by FactSet were expecting revenue of $534 million.
AOL said ad revenue would have been flat if not for changes associated with shutting down European businesses and shifting focus away from lower-margin products.
