AOL stock jumps despite a six per cent decline in its revenues

AOL’s third-quarter revenue dropped six per cent because of its dwindling dial-up internet access business but still beat analyst expectations, sending its stock soaring.

The company posted revenue of $531.7m (£333m), with advertising sales up eight per cent to $317.7m.

However, its share of display advertising – the eye-catching ads found on websites – has slipped as it faces stiff competition from Yahoo, Google and Facebook. Its third-quarter loss was $2.6m, compared with a profit of $171.6m a year ago.

The struggling company, which Time Warner spun off after a disastrous decade-long merger, has seen its stock fall more than 40 per cent this year. It is trying to regain its status as a popular online destination in a rapidly shifting online market.