The company, once front door to the Internet and now a burgeoning digital media outfit, continues to increase revenue from advertising in the latest quarter, helping it toward a planned takeover of Adap.tv, a marketplace for digital video advertising. August 7, 2013 4:31 AM PDT AOL Chief Executive Tim Armstrong has held an even keel on his designs to turn the one-time gateway to the Internet into an ad-driven digital media operation, as a 7% increase in ad revenue assisted better profit than expected in the latest quarter. The company also said it would buy Adap.tv, a video marketplace platform, for $405 million in cash and common stock. The addition "will make AOL a clear global leader in the most important growth segment in our industry - online video," Armstrong said in a release. The company said Adap.tv's revenue has at least doubled every year in the last three. For AOL, earnings plunged in the second quarter because the prior-year period included a huge gain from a $1.1 billion patent deal with Microsoft, but the latest bottom line was better than expected and ad revenue continued a steady pace in the right direction. AOL's goal of late has been to strengthen and expand its media brands, like Huffington Post and original video programming, emphasizing higher profit video advertising over traditional banner ads. To cap the end of 2012, AOL reported its first sign of revenue growth in the past eight years. Last month, AOL hired the man who led giant ad agency Publicis Groupe's digital technologies wing and Razorfish, while also striking a partnership with the Publicis to jointly offer live advertising on AOL's digital network. Overall Wednesday, AOL said advertising revenue increased 7% to $361.2 million. Search revenue was up 8% and global display revenue up 5% on AOL sites. Internet-access subscription revenue was fell 5% to $166 million. AOL reported a profit of $28.5 million, or 35 cents a share, down from $970.8 million, or $10.17 a share, a year earlier. Revenue rose 1.9% at $541.3 million. In trading before the official open of the market, AOL shares were up 3.7% at $37.50 recently on the results.
The company, once front door to the Internet and now a burgeoning digital media outfit, continues to increase revenue from advertising in the latest quarter, helping it toward a planned takeover of Adap.tv, a marketplace for digital video advertising.
AOL Chief Executive Tim Armstrong has held an even keel on his designs to turn the one-time gateway to the Internet into an ad-driven digital media operation, as a 7% increase in ad revenue assisted better profit than expected in the latest quarter.
The company also said it would buy Adap.tv, a video marketplace platform, for $405 million in cash and common stock. The addition "will make AOL a clear global leader in the most important growth segment in our industry - online video," Armstrong said in a release. The company said Adap.tv's revenue has at least doubled every year in the last three.
For AOL, earnings plunged in the second quarter because the prior-year period included a huge gain from a $1.1 billion patent deal with Microsoft, but the latest bottom line was better than expected and ad revenue continued a steady pace in the right direction.
AOL's goal of late has been to strengthen and expand its media brands, like Huffington Post and original video programming, emphasizing higher profit video advertising over traditional banner ads. To cap the end of 2012, AOL reported its first sign of revenue growth in the past eight years.
Last month, AOL hired the man who led giant ad agency Publicis Groupe's digital technologies wing and Razorfish, while also striking a partnership with the Publicis to jointly offer live advertising on AOL's digital network.
Overall Wednesday, AOL said advertising revenue increased 7% to $361.2 million. Search revenue was up 8% and global display revenue up 5% on AOL sites.
Internet-access subscription revenue was fell 5% to $166 million.
AOL reported a profit of $28.5 million, or 35 cents a share, down from $970.8 million, or $10.17 a share, a year earlier. Revenue rose 1.9% at $541.3 million.
In trading before the official open of the market, AOL shares were up 3.7% at $37.50 recently on the results.
