AOL’s profit slumps

Media company AOL said that it turned in revenues of $583.3 million for its financial first quarter.

But profits fell by 64 percent compared to the same period last year, with share prices showing a marked drop yesterday. AOL turned in a profit of $9.3 million, down from $25.9 million in the quarter last year.

AOL is trying to re-engineer itself as a compamy specialising in advertising technology but that’s a risky strategy, given the competitive nature of that sector.

The company claimed that investments in new technology accounted for the large drop in profits.