AOL's Revenue Rises 6% but Profit Falls Sharply AOL, the giant online-portal-turned-media company, on Tuesday reported third-quarter revenue of $561 million, up 6 percent from the period a year earlier. The growth was driven by an increase in the sale of premium and programmatic advertising, largely in video. But the results were clouded by restructuring and other costs associated with Patch, the company's very troubled hyperlocal news network. The company faced pretax restructuring costs of $19 million and noncash intangible asset impairments of $25 million related to its Patch business. The weakness weighed on the company's profit. Over all, net income dropped 90 percent, to $2 million. Loses at Patch led the company to lay off hundreds of employees last quarter and close up to a third of its offices. On a conference call with analysts, Tim Armstrong, AOL's chief executive, said Patch was in talks with partners who would help support the news operations and it would stop losing money by the end of the year. But Mr. Armstrong emphasized that the troubles with Patch should not take away from other significant improvements at AOL. In particular, he pointed to purchase of Adap.Tv, an advertising sales company. The deal has been a smart move for the company, adding strength in the video advertising market, which is expected to grow by more than 40 percent this upcoming year. Analysts and Wall Street agreed. After the results, the stock jumped nearly percent to $42.11. AOL is "clearly taking away market share from other companies" in video, said Clark Fredricksen, vice president of eMarketer Inc., a digital market research firm, "especially premium publishers that are competing with the reach and targeting capabilities of their ad network."