I'd say that they failed
That said, I'd like to have a closer look at the numbers before jumping to any conclusions. Nowadays the situation might be complicated a bit by the fact that AOL bundles "backup dial-up" service in with their packages of paid services that are primarily intended for broadband users.
The article states "that its Membership Group — the division that includes its dial-up Internet business — still generates most of the company's revenue".
According to the Yahoo! report[1] it includes every membership service (such as Mail):
"The Membership Group, which consists of offerings that serve AOL’s registered account holders, both free and paid, and are focused on delivering world-class experiences to AOL’s loyal users who rely on these AOL products and properties every day. The results for this segment include AOL’s subscription offerings and advertising offerings on Membership Group properties, such as AOL Mail, as well as from performance compensation for marketing third party products and services."
[1] http://finance.yahoo.com/news/aol-reports-revenue-growth-fir...