Media and entertainment giant AOL (AOL) announced Thursday a $250 million stock repurchase program in its ongoing effort to turn around the company and return value to shareholders.

The program, effective August 10, allows the company to buy its outstanding shares of common stock from time to time over the next year, with the timing and amount of shares in the program being determined by management based on market conditions.

The move comes after the Mission Viejo, Calif.-based company dramatically narrowed its second-quarter loss from a year ago on Wednesday with the help of stronger global advertising revenues. 

AOL boss Tim Armstrong said the company believes the buyback plan makes sense for the company and its shareholders and reflects a unique investment opportunity. 

We are continuing the disciplined execution of our strategy and have confidence in our future growth prospects, he said.

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