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AOL Reports 7 Percent Increase In Revenue

|Aug 7|magazine5 min read

The August edition of the Business Review USA is now live!

AOL, the online news, email and media giant reported a 7 percent increase (compared to the same quarter in 2012) in revenue on Wednesday.  Total revenue reported is $361 million.

The company also announced $405 million purchase of ADAP.TV, a video advertising company that allows purchases across the Internet and television. The acquisition falls in line with AOL’s goal to become a platform for live broadcasting and programming.

AOL’s was impressed that its ad sales increased 5 percent, and overall digital ad spending in the U.S. increased by 14.8 percent to a staggering $10.01 billion, in the second quarter of 2013 over the same period last year according to eMarketer, an online advertising research firm.

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Wall Street had a positive reaction to the increase in revenue; AOL’s stock was up 5 percent in pre-market trading before dipping closer to 2 percent in morning trading.

In spite of encouraging growth in advertising and traffic, up 3 percent year over year, the earnings exposed the company’s reliance on revenue from subscriptions to the AOL portal, a fast declining product. Taking a look at adjusted operating income before depreciation and amortization, or income obtained from standard operations, the membership side of the business was a net positive at $151.6 million, however still down 4 percent year over year.