AOL Inc. reported better-than-expected profit, but revenue declined sharply as the Internet company suffered from slides in advertising sales and dial-up subscriptions.

AOL reported fourth-quarter earnings yesterday of $66.2 million, or 61 cents a share, as it lowered expenses. In the period a year ago, it earned $1.4 million or 1 cent a share. That period included $106 million in restructuring costs.