AOL Beats Earnings Expectations, But Its Display Ad Business Is Weak

AOL reported earnings this morning, easily beating expectations.

Revenue came in at $529.4 million versus analyst estimates of 526.5 million. EPS was $0.22 which crushes expectations of $0.07.

The key slice of revenue, advertising, was $330.1 million, a 5% year over year increase.

However, Peter Kafka at All Things D notes that, AOL’s domestic display business dropped 1%. That’s not good.

Overall, the display business was only up 1%. This is supposed to be AOL’s core business. It needs to get that growing at a much better rate.

The problem, notes Kafka, is that AOL’s core traffic is down 4%, year-over-year.

Here’s a look at the numbers:

aol table

Photo: Screenshot

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