America Online

(AOL)

reported Thursday that its earnings more than doubled, exceeding Wall Street's forecasts, although the world's largest provider of online services did fall prey to some of the weakness in the Internet advertising industry.

For the fourth fiscal quarter ended June 30, net income, excluding one-time events, rose to $334 million, or 13 cents a diluted share, from $155 million, or 6 cents a share a year earlier. Analysts polled by

First Call/Thomson Financial

expected earnings of 11 cents a share, according to their consensus estimate.

Revenue rose 39% to $1.9 billion from $1.4 billion a year earlier.

In light of the

slowdown in the Internet advertising industry, the Dulles, Va.-based company's revenue from advertising and commerce was closely watched. Coming in at $609 million, it was admittedly a seemingly spectacular 95% increase over a year ago. However, it was up only 9% from the third quarter's $557 million.

AOL reported its financial results after regular trading ended Thursday. The company's shares fell 2 3/16, or 4%, to 59 1/2 in after-hours trading, according to

Island ECN

. They had closed at 61 11/16, up 2 5/16 or 4%.

"AOL came in with a respectable number, but it's a bit disappointing," said Jordan Rohan, an analyst at

Wit SoundView

, of the advertising and commerce revenue figure. "There's a lot of wind in their face because of weakness in the Internet advertising industry." He noted that the 9% advertising and revenue growth posted by AOL paled in comparison to the 18% growth reported by

Yahoo!

(YHOO)

in the quarter.

Rohan rates AOL a buy and his firm has done no underwriting for the company.

The company added 1.14 million new subscribers worldwide, with 992,000 net new members for the AOL service and 146,000 members for its CompuServe interactive services subsidiary.

The average number of minutes spent online per member per day totaled 58 minutes, less than the 64 minutes projected by Rohan, who said that good weather in the last month meant that people spent less time inside on their computers. "Seasonal weakness is to be expected," he said.

In the fall, AOL expects to close its deal to

buy

Time Warner

(TWX)

.

Time Warner reported its

earnings on Tuesday, beating Wall Street's expectations by 3 cents a share, primarily because of strong growth in its cable television and publishing units.

Including one-time net charges of $10 million for the acquisition of

MapQuest

this quarter and $15 million for the acquisitions of

Spinner Networks

,

Nullsoft

and

Moviefone

in the year-ago quarter, AOL reported net income of $338 million, or 13 cents a share, up from $157 million, or 6 cents a share, a year earlier.