AOL returns to display advertising growth
AOL Inc reported a rise in first-quarter revenue as the online media group posted growth in display advertising.Updated: May 08, 2013 17:46 IST
AOL Inc reported a rise in first-quarter revenue as the online media group posted growth in display advertising.
Revenue from display ads rose 8 percent to $140.4 million. The ads are an important benchmark for the company as subscription revenue for its dial-up service dwindles. Also, advertisers tend to pay more for display ads, which are often featured prominently on websites.
Revenue from the Huffington Post and other media sites such as TechCrunch and Engadget jumped 14 percent to $189.6 million. AOL has made big bets to coax more ad dollars, such as its 2010 acquisition of Huffington Post for $315 million.
Total revenue increased 2 percent to $538.3 million, beating analysts' expectations of $537.1 million, according to Thomson Reuters I/B/E/S.
Net income rose to $25.9 million, or 32 cents per share, from $21.1 million, or 22 cents per share, in the same period a year ago. Analysts looked for earnings per share of 33 cents.