America Online Posts $11.8-Million Loss

America Online Inc. reported a quarterly loss of $11.8 million, attributed to previously announced expenses from its move to flat-rate pricing. Its operating performance topped Wall Street’s expectations, however. The Dulles, Va.-based online service, the nation’s largest, said the loss for the fiscal fourth quarter, ended June 30, is the equivalent of 12 cents a share. Results were dragged down by the $24.5 million it spent to renegotiate agreements with newspapers, magazines and other firms providing information on AOL to account for a surge in demand after the switch to flat fees. The loss contrasts with a profit of $16.1 million, or 14 cents a share, for the same period last year. But excluding the charges, AOL earned $10.9 million, or 9 cents a share, for the recent quarter--exceeding analysts’ projections of 7 cents a share. Revenue jumped 42% to $475.7 million, from $334.5 million a year earlier. The results were released after the close of trading on the New York Stock Exchange, where AOL stock closed up 88 cents at $71.50.