Skip to main content

America Online


said Tuesday that its earnings more than doubled in its third fiscal quarter, exceeding Wall Street's estimates by 2 cents, as its revenues surged 47%.

Dulles, Va.-based AOL reported earnings of $271 million, or 11 cents a diluted share, in the quarter, compared with $104 million, or 4 cents a share, a year earlier.

Analysts surveyed by

First Call/Thompson Financial

projected earnings of 9 cents a share, but several analysts expected AOL to beat their estimates by a penny or two.

Revenues rose to $1.84 billion, from $1.25 billion in the 1999 quarter.

The company's growth was fed in part by a strong performance in advertising and commerce, which saw revenues double to $557 million from a year earlier. The growth in that sector was well ahead of analysts' expectations, who estimated advertising and commerce would pull in about $480 million for the quarter.

"We're taking online advertising and commerce to new heights, yet we've barely scratched the service in terms of the impact our medium can have," said Bob Pittman, president and chief operating officer, in a statement.

AOL added 1.7 million new subscribers and finished the quarter with 22.2 million, in line with analysts' expectations.

Including a $275 million gain from the sale of various investments, AOL's net income for the quarter totaled $438 million, or 17 cents a diluted share, compared with $411 million, or 16 cents a share, a year earlier.

AOL shares traded higher ahead of the earnings announcement, which was made after the stock market closed. AOL rose 1 3/4, or 3%, to close regular trading at 60 1/2. According to


in after-hours trading, AOL was down 1/2 to 60.

AOL is acquiring

Time Warner


. The deal is expected to be completed by the fall.