Online media group AOL Inc on Wednesday reported first-quarter revenue grew on strength in its advertising business, but shares tumbled on concerns that profits were still mostly coming from a shrinking dial-up platform.

"The core issue with this company is can they make content profitable?" said Ben Schachter, an analyst with Macquarie Research. "What you see every quarter is the only thing making money is the membership group. They are clearly going in the right direction but we want to see more progress."

AOL posted an operating loss of almost $5 million from its media sites, including Patch, the group of hyperlocal websites, the Huffington Post, Engadget and TechCrunch. AOL spent more than $100 million to get Patch off the ground.AOL Posts Q1 Revenue Increases [uk.reuters.com]