Global advertising revenue growth pushed digital media company AOL’s third-quarter revenue up 6pc year-over-year to US$561.3m from US$531.7m in the year-ago period.
Global advertising grew 14pc year-over-year to US$366m, reflecting 32pc growth in Third Party Network revenue. Growth in the sale of premium formats, primarily video, across AOL’s programmatic platform, drove that total.
Improved pricing nudged global display advertising revenue up 5pc to US$141.9m, compared to US$135.4m in the third quarter of 2012.
An increase in revenue per search is behind the 3pc jump in global search revenue to US$95m, compared to US$91.8m in the year-ago quarter.
AOL Properties generated third-quarter revenue of US$236.9m, reflecting an increase of 4pc from US$227.2m from the year-ago quarter.
The company also reported that operating income, net income and diluted earnings per share (EPS) were negatively impacted by pre-tax restructuring costs of US$19m, as well as US$25m related to non-cash asset impairments in its Patch operations.
Third-quarter operating income dropped 16pc, from US$43.1m in the year-ago quarter to US$16.7m.
AOL’s net income amounted to US$2m, down 90pc from US$20.8m in the third quarter last year.
Diluted earnings per share totalled US$0.02, down 91pc from US$0.22 in the year-ago quarter.
The company ended the third quarter with free cash flow of US$64.6m.
Tim Armstrong, AOL chairman and CEO, said the company’s third-quarter results are another step in its long-term plan.
“The Q3 results highlight the strength of AOL’s strategy and the consistent execution of our team in delivering great consumer experiences and successful customer results.”
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