AOL just reported earnings. Revenues beat Wall Street expectations, thanks to strong ad network and search revenues. AOL’s core business, display advertising, did not grow.
- EPS: $0.41 versus $0.41 expected.
- Revenue: $599 million versus $573 expected.
The big news is that AOL grew revenues for the first time in eight years.
Here’s how AOL did that – through accelerating ad revenue growth and flattening subscription revenue declines:
The big negative news is that AOL did not grow is display advertising business year-over-year. Ad revenue growth depended once again on search and ad network growth.
AOL changed the way it segments its businesses for these earnings, breaking its business into three. Here is how they performed: