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: