AOL (NYSE:AOL) revealed on Wednesday soaring fourth-quarter profits that topped Wall Street’s estimates, but the struggling company’s revenue slid 26% as its ad sales continue to slump.The Internet company said it earned $66.2 million, or 61 cents a share, last quarter, compared with a profit of just $1.4 million, or a penny a share, a year earlier. Excluding one-time items, it earned 60 cents a share, solidly beating the Street’s view of 46 cents.Revenue declined 26% to $596 million, surpassing consensus calls for $587 million. Gross margins declined to 36.6% from 38.7%.AOL continues to face resistance in attempting to turn around its ad sales, which slumped 29% last quarter to $331.6 million.Display ad sales slid 14% overall to $151 million and 8% domestically to $139.6 million. AOL said its subscription revenue fell 7% to $28.5 million.Shares of AOL lost ground Wednesday, easing 1.34% to $23.53. The stock is virtually unchanged on the year."I am very proud of what we accomplished in 2010 as we began the year with a significant restructuring of AOL and ended the year with a significantly improved balance sheet, a number of exciting new products and a new culture focused on winning," CEO Tim Armstrong said in a statement.
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