AOL Q4: Return To Growth Led By Search, Network Ad Revenues

AOL LogoAOL 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 Q4 Revenues

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.

AOL business segments

AOL segment revenues

Related Topics: AOL | Channel: Industry | Top News

Sponsored


About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

Connect with the author via: Email | Twitter | Google+ | LinkedIn



Marketing Day:

Get the top marketing stories daily!  

Share

Other ways to share:
 

Read before commenting! We welcome constructive comments and allow any that meet our common sense criteria. This means being respectful and polite to others. It means providing helpful information that contributes to a story or discussion. It means leaving links only that substantially add further to a discussion. Comments using foul language, being disrespectful to others or otherwise violating what we believe are common sense standards of discussion will be deleted. You can read more about our comments policy here.

Comments are closed.

Get Our News, Everywhere!

Daily Email:

Follow Marketing Land on Twitter @marketingland Like Marketing Land on Facebook Follow Marketing Land on Google+ Subscribe to Our Feed! Join our LinkedIn Group Check out our Tumblr! See us on Pinterest

 
 

Click to watch SMX conference video

Join us at one of our SMX or MarTech events:

United States

Europe

Australia & China

Learn more about: SMX | MarTech


Free Daily Marketing News!

Marketing Day is a once-per-day newsletter update - sign up below and get the news delivered to you!