AOL reports quarterly earnings

NEW YORK — AOL reported a 13 percent rise in quarterly revenue Thursday, helped by higher ad sales and cited its best growth in a decade.

Th company has turned its focus to reap more advertising dollars from brands.

That involves targeting three areas of growth in digital advertising: video, mobile and “programmatic” buying, where machines buy and sell advertising on electronic exchanges.

Tim Armstrong, AOL CEO:

“The investments we have made are paying off.”

Advertising revenue soared 23 percent to $507 million on strong growth at its third party network, which includes its recent purchase of video advertising platform Adap.tv.

The company’s Brand Group, which includes properties like the Huffington Post and Engadget, increased its adjusted operating income before depreciation and amortization to $35.6 million in the quarter, compared to $8.8 million in the same quarter a year ago. That is partly because of deep cuts at hyperlocal network Patch. AOL handed majority ownership of Patch to turnaround firm Hale Global in January.

The company’s total revenue was $679 million in the fourth quarter.

Net income attributable to AOL rose to $36 million, or 43 cents per share, in the quarter from $35.7 million, or 41 cents per share, a year earlier.

Source: Reuters

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