AOL Reports Quarterly Revenue At $529 Million
AOL Inc. has reported their quarterly earnings. Revenue for the quarter was $529 million. Wall Street’s expectations were $527 million and seven cents a share. Domestic display sales are down 1% after climbing for several quarters. AOL’s audience has been dropping as traffic to AOL’s own properties is down 4% over the last year. AOL’s dial-up division is still powering the company, but it is continue to shrink. They lost 14% of their subscribers in the last year.
It has been a full year since AOL acquired The Huffington Post for $315 million and $30 million for TechCrunch. These new websites were fighting off the decrease from dial-up users and the company is still integrating The Huffington Post into the company. AOL CEO Tim Armstrong predicts that traffic will go up over time. AOL is up to 108 million uniques versus 107 million uniques six months ago.
AOL said that the Q1 drop was around an advertiser that stopped spending during the quarter. “A lot of it was because we have had a display strategy that was probably off-tune,” said Armstrong during an investor call. “I was not happy with the domestic display.” AOL said that their display ad problem won’t be fixed this quarter, but domestic display will start moving up again in the second half of the year.