AOL Reports Lower Earnings for 2011
Rising costs, lower subscription revenue at work
AOL closed a turbulent 2011 with earnings plunging as its costs rose and subscription revenue fell.
AOL’s fourth-quarter revenue fell by 3 percent from the previous year to $576.8 million. Year-over-year net income plummeted 66 percent to $22.8 million, with diluted earnings per share down 62 percent to $0.23. The company's cost of revenue grew in a year in which it acquired The Huffington Post.
AOL’s subscription revenue—which provides almost all of AOL's non-ad revenue—fell by 18 percent year over year to $194.6
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