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AOL revenue grew for the first quarter in eight years

Staff writer ▼ | February 8, 2013
AOL Q4 revenue grew year-over-year for the first quarter in eight years thanks to global advertising revenue growth.
AOL
AOLAOL Q4 revenue grew year-over-year for the first quarter in eight years thanks to global advertising revenue growth.


The company reported that global advertising revenue grew 13% year-over-year reflecting, including 31% growth in third party network revenue, 17% growth in search revenue (formerly "search & contextual"), and flat global display revenue, with a 3% decline in domestic display revenue offset by continued growth in international display revenue.

Q4 2012 Adjusted OIBDA of $123.3 million excluded $13.3 million of special items including $7.1 million of patent sale and license costs, primarily related to a special year-end employee bonus related to the patent transaction, and costs associated with the acquisition of Buysight of $5.1 million. $11 million of these special items are recorded in cost of revenues and $2 million are recorded as general and administrative expenses.

Operating income grew year-over-year reflecting a $16.4 million increase to the original gain on the sale of our legacy access businesses in the UK and Germany, due to the release of a VAT indemnification reserve. The increase to the gain on sale had no impact on AOL’s cash flows as there was no payment made in connection with the release.

Subscription revenue declined 10% year-over-year and monthly average churn was 1.8% in Q4 2012 compared to an 18% decline year-over-year in revenue and 2.2% monthly average churn in Q4 2011.


 

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