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AOL has reported revenues up a minute 2% yoy at $541m in Q2. Profits of $28.5m were reported – down from $1.1b last time. But that was all down to the special patent sale to Microsoft in Q2 2012. Profits and revenues were pretty much ‘as expected’.
AOL also announced the $405m acquisition of digital video advertising platform Adap.TV. The ‘bet’ here is that there will be a significant move towards online TV watching on tablets and the like. Adap.TV allows advertisers to personalise ads. So more Stannah stairlifts and Funeral service ads for me I guess. Because that’s what seems to served up to me by the personalised ads on Facebook nowadays. This is CEO Tim Armstrong’s biggest acquisition todate. The last biggie was the Huffington Post for $315m in Feb 11.
I guess the surprise about AOL’s results is that revenues from dial up internet access subscriptions ‘only’ declined by 5% this quarter. It's amazing that they still earned $166m in Q2 from such subscriptions. Ad revenue was up 7% but unique visitors to the AOL website were ‘only’ up 3% yoy.
AOL shares were up 1.4% on the results. +c23% YTD.
