AOL, Inc. (NYSE:AOL) released the results from its most recently completed quarter, posting basic net income of 35 cents per share and diluted net income of 34 cents per share on $606.8 million in revenue. Analysts had been expecting earnings of 44 cents per share and $594 million in revenue for the second quarter. In the same quarter a year ago, AOL posted earnings of 35 cents on $541.3 million in revenue.
Breaking down AOL’s earnings
AOL reported that this was the sixth quarter in a row in which it posted growth in adjusted OIBDA, due to cost savings initiatives, and revenue. The company saw a 12% increase in overall revenue as it accelerated growth in global ad revenue, which rose 20% to $451.7 million. AOL reported 60% growth in Third Party Platform revenue and a 1% decline in revenue from AOL Properties display ads. In AOL Properties search revenue, the company reported 6% growth. Revenue from subscriptions slumped by 7%.
The company increased the number of its multi-platform users by 18% year over year. AOL reported that revenue from its Brand Group fell year over year due to a negative impact from “shuttered and de-emphasized brands.” AOL’s Membership revenue fell 7% but was partially offset by growth in display revenue as the company saw pricing on its inventory for AOL Mail increase.
“AOL’s future as a scaled media technology company continues to get stronger,” said AOL Chairman and CEO Tim Armstrong in a statement. “AOL grew consumer usage, video, programmatic advertising, branded content, and ad pricing throughout the first half of 2014, and we will continue to make AOL one of the best operating companies in our industry.”
AOL buys back shares
During the second quarter, the company repurchased 1.6 million of its common shares for an average of $36.84 per share. That’s about $59 million in aggregate. AOL’s board of directors also authorized a $150 million share buyback program, which lasts until next July.