AOL Inc's fourth-quarter profit increased but revenue declined sharply as the Internet company suffered from slides in advertising sales and dial-up subscriptions.

AOL reported earnings of $66.2 million, or 61 cents a share, compared with $1.4 million or 1 cent a share, in the same period a year ago. Revenue fell 26 percent to $596 million.

Its revenue surpassed the $587.5 million analysts had expected, according to Thomson Reuters I/B/E/S.

(Reporting by Paul Thomasch; Editing by Derek Caney)