AOL Third-quarter Profit Surges

(RTTNews) - Web services company AOL, Inc. (AOL) Thursday reported a sharp increase in the third-quarter profit, as total revenue climbed 12 percent, driven by strong growth in global advertising and other revenue.

The result also reflected a fall in restructuring costs and asset impairments. Adjusted earnings matched analysts' expectations, while revenues came above view.

For the quarter, net income attributable to the company surged to $28.5 million or $0.35 per share from $2.0 million or $0.02 per share in the prior year.

On an adjusted basis, earnings were $0.52, while the firm posted $0.56 per share last year.

On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $0.52 for the quarter. Analysts' estimates typically exclude special items.

Total revenues grew 12 percent to $626.8 million from $561.3 million a year ago, and came above 17 analysts' estimated revenue of $623.52 million for the quarter.

Global advertising and other revenues climbed 18 percent to $473.4 million. Subscription revenue declined to $153.4 million from $161.6 million in the preceding year.

Programmatic revenue surged to 37 percent of non-search advertising revenue from 12 percent in the same quarter last year.

Domestic AOL subscribers declined 9 percent to 2.27 million. ARPU, calculated as domestic average monthly subscription revenue per AOL subscriber, rose 6 percent to $21.35.

Domestic AOL subscriber monthly average churn improved sequentially to 1.4 percent, while it was flat with last year.

The company saw 14 percent growth in domestic multi-platform unique visitors compared to last year.

Restructuring costs were $1.2 million, significantly down from $19 million a year ago. For the prior-year quarter, AOL recorded goodwill impairment charge totaling $17.5 million.

AOL closed Wednesday's trading at $43.87.