Business

AOL profit slumps 66% on higher costs

Pat McMahon Contributor
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AOL Inc.’s AOL +6.42% fourth-quarter earnings fell 66% amid higher costs and tax provisions, while the pace of revenue declines continued to stabilize and advertising sales were up for a third straight quarter.

The onetime Internet pioneer said its 2011 revenue drop of 9% was the lowest rate of decline it has seen in five years.

The company had been posting losses in recent quarters, raising questions about the progress of its turnaround efforts.

AOL has aimed to transform itself into an advertising-supported digital media business, acquiring companies such as online news and commentary website Huffington Post for $315 million last year.

Full story: AOL profit slumps 66% on higher costs

Pat McMahon