Internet company AOL Inc. reported a net loss in its latest quarter on Wednesday, down from a profit in the year-ago period that was bolstered by a gain on the sale of its ICQ instant messaging business.
Its revenue continued to decline, as it has since its late 2009 separation from Time Warner Inc. But an 8 percent jump in advertising revenue helped AOL post revenue above Wall Street's expectations. Shares rose 98 cents, or 7.3 percent, to $14.33 in morning trading.
The New York company posted a third-quarter net loss of $2.6 million, or 2 cents per share, down from earnings of $171.6 million, or $1.60 per share, in the same period a year earlier. Last year's earnings included a gain of $119.6 million from the ICQ sale, while the results in the latest quarter include a restructuring charge of $7.1 million.
Revenue fell 6 percent to $531.7 million from $564.2 million.
Analysts, on average, were expecting revenue of $526.1 million, according to FactSet.
CEO Tim Armstrong said AOL increased its advertising revenue thanks to higher third-party network ads and global display advertising revenue. That's a closely watched metric because it is more profitable than the third-party ad business.
The Internet company has been working on turning its business around as demand for its old dial-up Internet access service fades.
A big part of that revival has been its efforts to add popular content to its sites. It bought The Huffington Post news website this year and technology blog TechCrunch last year. AOL is trying to lure more visitors, bolstering its appeal to advertisers.