AOL Revenue Grows On Strong Ad Sales
AOL today reported quarterly revenue growth for the first time in eight years.
Revenue, keyed primarily by strong search and third-party network ad sales, rose 4% during the fourth quarter of 2012 to $599.5 million, compared with $576.8 million from the same period a year ago. For the year, ad revenue rose 8% to $1.4 billion from $1.3 billion in 2011.
Search revenue for the quarter was up 17% to $103.6 million and up 4% for the year to 371.5 million. Third-party network ad revenue grew 31% to $137.2 million during the quarter and was up 23% on the year.
Display advertising remained flat for the quarter and the year, bringing in $169.8 million and $575.4 million respectively.
Subscription revenue fell 10% during the quarter to $174.2 million from 194.6 million in fourth quarter 2011. For the year, subscription revenue hit $705.3 million, off 12% from 2011’s $803.2 million.
The company’s net income grew to $35.7 million in the fourth quarter, 57% ahead of the same quarter a year ago.
Revenue for the brand group — which includes hyperlocal network Patch, Huffington Post and tech news site TechCrunch — rose to $213.2 million for the quarter, up 4% from the fourth quarter of 2011.
In a Friday morning earnings call, company CEO Tim Armstrong said that Patch fell short of its revenue target for the year, according to Forbes’ Jeff Bercovici. The hyperlocal network brought in $34 million in 2012, well under the expected $40 million to $50 million, Bercovici wrote.