Tags: aol | earnings | ad | sales

AOL Revenue Beats Estimates as Ad Sales Jump

Thursday, 06 Feb 2014 08:18 AM

AOL Inc. reported a better-than-expected 13 percent rise in quarterly revenue, helped by higher ad sales.

AOL's shares rose almost 6 percent to $50.25 in premarket trading on Thursday.

The company, which is trying to rely less on its declining dial-up subscription service, has turned its focus to reaping more advertising dollars from marketers through electronic ad sales.

AOL bought Adap.tv, an electronic trading platform that helps companies advertise on video websites, for $405 million last year.

The deal bolstered its efforts to attract more advertisers and publishers to buy and sell advertising through electronic trading desks known on Madison Avenue as "programmatic."

The company, which owns the Huffington Post news website and the TechCrunch blog, reported a 23 percent rise in advertising revenue in the fourth quarter due to higher sales of premium ad formats, such as video, through its "programmatic" platform.

Revenue from AOL's Third Party Network sales, which includes sales from the "programmatic" platform, rose 63 percent in the quarter, accounting for a third of total revenue.

The company's total revenue rose to $679 million in the fourth quarter ended Dec. 31 from $599.5 million a year earlier.

Analysts on average had expected revenue of $655.8 million, according to Thomson Reuters I/B/E/S.

Net income attributable to AOL rose to $36 million, or 43 cents per share, in the quarter from $35.7 million, or 41 cents per share, a year earlier.

Excluding items, the company earned 64 cents per share, according to Thomson Reuters I/B/E/S, which came in above analysts' average estimate of 60 cents.

© 2017 Thomson/Reuters. All rights reserved.

 
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AOL Inc. reported a better-than-expected 13 percent rise in quarterly revenue, helped by higher ad sales. AOL's shares rose almost 6 percent to $50.25 in premarket trading on Thursday.The company, which is trying to rely less on its declining dial-up subscription service,...
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2014-18-06
Thursday, 06 Feb 2014 08:18 AM
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