CBJ – May 4 – The first quarter profits of America Online (AOL) have taken a significant dip, according to reports, as 2011 Q1 figures fell to $4.7 million profit, about four cents a share, down from $34.7 million and 39 cents, respectively, from 2010's first quarter.

AOL's overall advertising revenue also fell by 11 per cent, to $313.7 million. Overall revenue dipped 17 per cent, to $551.4 million, something the company attributes to lower levels in both advertising revenues as well as subscription packages. According to a report, AOL has seen a large decrease in its subscribers, falling from more than 25 million in 2002 to slightly more than 5 million in the final quarter of 2009.

Last year's first quarter operating income reached a $80.7 million surplus, however, it took a significant fall this year to more than $11 million in reported losses.

However, the company remains determined to rebuild from its disappointing quarterly results.

Tim Armstrong, AOL CEO, said in a statement, "Today represents an important milestone in the turnaround of AOL as global display revenue grew for the first time since the fourth quarter of 2007."

The company continues to restructure following its earlier separation from entertainment conglomerate Time Warner, already this year purchasing online news site The Huffington Post, in a reported $315 million deal, among other investments in media ownership.

"It's the first evidence they might be able to achieve a turnaround in the advertising business," Clayton Moran, an analyst with private investment firm The Benchmark Co., said in a report.