AOL 1Q profits slump

NEW YORK (AP) — Very little went right for AOL Inc. in the first quarter as it cut way back on staff and tried to refocus its business.

The Internet company said today that tumbling online advertising revenue, along with restructuring costs, led to a 58 percent drop in first-quarter net profit.

AOL shares sank $3.66, or 13.1 percent, to $24.35 in afternoon trading.

The company, which separated from Time Warner Inc. last year, earned $34.7 million, or 32 cents per share. This compares with $82.7 million, or 78 cents per share, in the year-ago quarter.

Revenue fell 23 percent to $664.3 million, missing analyst estimates for $679 million, according to Thomson Reuters.

AOL struggled in both its traditional business and its newer ones. Its long-declining dial-up Internet service revenue fell 28 percent to $282.7 million, while its advertising revenue fell 19 percent to $354.3 million.