AOL has reported their best quarterly revenue growth over the past 8 years due to strong search and ad sales. Revenue increased 4% to around $600 million in Q4 and beat analyst estimates of $573.3 million.
AOL’s ad revenues are becoming increasingly important as the company is aiming to become less dependent on their subscription-based dial-up services. Media properties like The Huffington Post and Patch rose to 13% to hit around $410.6 million.
Advertising sold through AOL’s third-party network helped boost their overall revenues. Revenue at AOL Networks, the company’s market for selling inventory on behalf of publishers, increased to $183.5 million. The company’s net income rose to $35.7 million (41 cents per share) compared to $22.8 million (23 cents per share) one year earlier.
The subscription dial-up service is still a major portion of the company’s profits. Operating income from this group before depreciation and amortization hit $158.7 million for the quarter.
AOL will be repurchasing $100 million worth of stock as authorized by the board.