AOL revenues up 8pc to US$583m

7 May 2014

Tim Armstrong, CEO of AOL

AOL has reaped first-quarter revenues of US$583m, up 8pc from the same quarter last year, and driven by a 16pc increase in global advertising revenue, as well as a 55pc increase in third-party platform revenue.

AOL reported OIBDA (operating income before depreciation and amortisation) of US$107.3m, a 2pc increase from the year-ago quarter.

However, net profits fell by 64pc in the year to US$9.3bn. The company reported a 3pc decline in global display revenue and a 1pc decline in global search revenue.

Subscription revenues also declined 10pc to US$149.9m.

AOL’s focus on programmatic advertising is being given an added push by its US$101m acquisition of Convertro today.

“Q1 marks the fifth consecutive quarter of consumer, revenue and adjusted OIBDA growth,” said Tim Armstrong, AOL chairman and CEO.

“AOL’s investment in global media and technology platforms is allowing AOL to compete on a global scale.”

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John Kennedy is a journalist who served as editor of Silicon Republic for 17 years