AOL CEO Tim Armstrong’s efforts appear to be paying off. The company announced Q4 2012 earnings, which were better than expected both in terms of revenue and profits.
AOL reported $599.5 million in quarterly revenues and $2.2 billion for the full year. Quarterly Wall Street consensus estimates were $574 million.
Revenue increases were lead by AOL’s third-party ad network, which grew 31 percent to $137.2 million, and search advertising (search and contextual), which grew 17 percent to $103.6 million.
Display revenues were flat year-over-year, coming in at essentially $170 million. Somewhat worrisome, US display revenue declined 3 percent, which was offset by growth in international display revenue.
AOL subscription revenue was down 10 percent, a result of “15 percent fewer domestic AOL-brand access subscribers year-over-year.” However APRU was up because of increased pricing.
Quarterly churn was flat at 1.8 percent. Indeed, perhaps the bottom has been reached in AOL’s subscription business. AOL now has 2.8 million subscribers.
Below are AOL’s various business units and brands and how they performed by segment.
Related Topics: AOL | Channel: Industry | Top News
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