AOL Reports Q3 Earnings, Beats Expectations
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AOL just reported its Q3 earnings.
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It beat expectations.
Profits are down sharply year-over-year, but that's because AOL finally cut costs in its local news division, Patch, and had to deal with restructuring costs and asset impairments.
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Investors have long yearned for AOL to cut Patch costs, so they likely won't mind the short term pain.
Adjusting for those costs, profits are up.
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Here's a quick run down from the company:
- Total Revenue was $561.3M versus ~$549 million estimates.
- Adjusted OIBDA of $119.8 versus ~$115 million estimates.
- Profits were down 90% year-over-year, but this is due to "pre-tax restructuring costs of $19.0 million as well as $25.0 million related to non-cash intangible asset impairments in our Patch operations."
- Excluding the items impacting comparability detailed on page 9 of the release gets you to an Adjusted EPS of $0.55, which is $0.04 ahead of the consensus estimate of $0.51.
AOL says it repurchased 2.5 million shares from July 1 through today at an average of $34.25.
AOL highlighted these trends in a release emailed to us:
- Grew all advertising revenue lines year-over-year for the 3rd consecutive quarter
- Grew global advertising revenue year-over-year for the 10th consecutive quarter
- Grew search revenue year-over-year for the 5th consecutive quarter
- Grew Third Party Network revenue 32% year-over-year for the 10th consecutive quarter
- Grew Third Party Network revenue 17% year-over-year, excluding Adap.tv
- Grew Brand Group display revenue double-digits (11%)
- Brand Group returns to positive Adjusted OIBDA
- Traffic on AOL properties accelerated to 4% year-over-year growth, our 5th consecutive quarter of growth
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