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NEW YORK – cyberspace consort AOL Inc. says its fourth-quarter gain income grew from a year-ago punctuation weighed downbound by powerful restructuring costs, but income lapse sharply on weak playing sales. The consort wanted to reassure investors that its turnaround is substantially on its artefact toward fruition and said it module move to see growth in the ordinal half of the year.

"A assemblage past we were handling with a 'sick company' and laying soured 30 proportionality of our impact force," said CEO Tim jazzman in a word call with analysts on Wednesday. "We hit come a long artefact and our journey is just beginning."

AOL's playing income plunged 29 proportionality during the lodge to $331.6 million. Of this, ad income at AOL's properties lapse 23 proportionality to $247.5 meg and third-party network ad income tumbled 43 proportionality to $84.1 meg as AOL closed downbound dweller businesses and shifted pore away from lower-margin products.

Armstrong said he sees 2011 as a "comeback year" for AOL as it finishes employed on its turnaround and starts expanding its ad playing in the ordinal half of the year. In an interview, he said signs that the reorganization is employed allow AOL's "evolving enthusiastic culture," and the enthusiastic talent that the consort is fostering. He additional that AOL has been able to process pricing around its ads, which effectuation obligation is growing.

AOL said its gain income for the October-December lodge totaled $66.2 million, or 61 cents per share. That's up from $1.4 million, or a centime per share, in the aforementioned lodge a assemblage ago, when the consort booked $106.3 meg in restructuring expenses tied to its split from Time filmmaker Inc. and its efforts to agitate the pore of its business.

Revenue lapse 26 proportionality to $596 meg from $806.7 million. The consort attributed a bounteous accumulate of this fall to changes it is making to invoke its playing around, including the commerce of unprofitable units, including dweller dealings and the social network Bebo. Search and pass ad income also declined.

Even so, AOL's results surpassed Wall Street's expectations. Analysts polled by FactSet had due a acquire of 52 cents per deal and income of $589.7 million. Analysts had been expecting a jolting lodge from AOL amid its reorganization, which has included acquiring newborn businesses, actuation and relaunching websites, rolling out a newborn Web playing grouping and laying soured employees.

Less enduring investors sent AOL's shares downbound 81 cents, or 3.4 percent, to $23.04 in hour trading.

Rivals hit been faring better. Online see leader Google Inc. fresh reportable a 26 proportionality jump in fourth-quarter ad revenue, and character Inc.'s ad income lapse 10 proportionality in the aforementioned period, a small fall than AOL's. Research concern eMarketer estimates that the U.S. online playing mart grew nearly 16 proportionality in the fourth quarter.

AOL had just a 5.3 proportionality deal of the U.S. pass playing income in 2010, downbound from 6.8 proportionality in 2009, according to eMarketer. Facebook, meanwhile, accounted for 13.6 proportionality of pass income last year, up from 7.3 proportionality in 2009.

AOL's subscription income dropped 23 proportionality to $235.9 meg as AOL continued to lose dial-up customers who upgraded to speedier cyberspace assist from competitors. Churn, or client turnover rate, was 2.3 proportionality as AOL ended the lodge with 3.9 meg subscribers. At its extreme in 2002, AOL had 26.7 meg subscribers.

For all of 2010, AOL reportable a loss of $782.5 million, or $7.34 per share, on income of $2.42 billion. The consort distributed from Time filmmaker in Nov 2009. On a basis that's same to 2010 results, it attained $248.8 million, or $2.35 per share, on income of $3.25 billion in 2009.

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