Tue Nov 6, 2012 7:27am EST (Reuters) - AOL Inc (AOL.N) reported higher-than-expected quarterly revenue on strong advertising sales. The company said on Tuesday that third-quarter revenue was flat at $531.7 million, ahead of the analysts' average estimate of $521.6 million, according to Thomson Reuters I/B/E/S. Advertising revenue rose 7 percent to $340 million, while subscription revenue for AOL's dial-up services fell 10 percent to $173.5 million. Net income was $20.8 million, or 22 cents per share, compared with a year-earlier loss of $2.6 million, or 2 cents per share. Reporting by Jennifer Saba; Editing by Lisa Von Ahn