AOL’s Third Quarter: Revenues Drop 26 Percent, Profit Surges

Our new corporate overlords (that would be AOL) have just released their Q3 earnings report, and it’s a mixed bag.

Total revenues for the quarter were down 26 percent, from $763.9 million to $563.5 million, in the previous year. Profit, on the other hand, surged thanks to cost-cutting and the gains on the sales of ICQ and its Kayak investment.

Net income increased to $171.6 million, or $1.60 per share, from $74.0 million or $0.70 per share last year.

(We reported on AOL’s Q2 2010 earnings here if you would like to compare).

Advertising revenue fell 27 percent to $292.8 million on declines in search, display and third-party ads, AOL reported. Subscription revenue dropped 26 percent to $244.8 million.

(We’re going over the rest of the numbers and will update with more relevant information)

Information provided by CrunchBase

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