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For First Time in 8 Years, AOL Revenue Increases

By - Source: AOL | B 24 comments

Q4 2012 revenue increased to $599 million, a 4 percent gain.

For the first time in eight years, AOL, the once-dominant American global brand company that invests in brands and websites (Engadget, Joystiq, etc.), has reported an increase in revenue.

During the fourth quarter of 2012, the company generated revenue of $599 million, an increase from the $576 million it made in 2011's Q4, which represents a 4 percent gain. The figure beat analyst estimates of $573 million.

AOL said the increase is because of a jump in sales from its global advertising, which grew by 13 percent from 2011. Ad revenue from third-party networks increased by 31 percent, while search revenue jumped by 17 percent.

Subscription sales decreased by 10 percent, with the average monthly churn rate being 1.8 percent. Comparatively, AOL suffered an 18 percent decline and a 2.2 percent churn rate during 2011's Q4. For the entirety of 2012, revenue dropped to $2.19 billion from $2.2 billion in 2011. AOL stressed that it expects to see its revenue grow for 2013.

"AOL returned to growth and generated significant value for shareholders in 2012," said CEO Tim Armstrong. "AOL has strong momentum entering 2013 and is positioned to continue on our growth path by executing our strategy to build the next generation media and technology company."

 

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Top Comments
  • 17 Hide
    A Bad Day , February 9, 2013 3:22 AM
    I still have an AOL free 500 hours CD. I wonder if I could still use it...
  • 17 Hide
    CheesyHotDogPuff , February 9, 2013 3:20 AM
    Say what? Aol, getting revenue?
  • 15 Hide
    shqtth , February 9, 2013 4:30 AM
    BenihanaYeah! I've got that on a Floppy myself.


    AOL was a good source for replacement floppies :p 
    My DOS boot disk is on one haha
Other Comments
  • 17 Hide
    CheesyHotDogPuff , February 9, 2013 3:20 AM
    Say what? Aol, getting revenue?
  • 17 Hide
    A Bad Day , February 9, 2013 3:22 AM
    I still have an AOL free 500 hours CD. I wonder if I could still use it...
  • 10 Hide
    afrobacon , February 9, 2013 3:54 AM
    A Bad DayI still have an AOL free 500 hours CD. I wonder if I could still use it...

    I used to collect those things; I'm sure I have a "1.0" version disc laying around in some old CD case somewhere. I wonder if it's worth anything...
  • 8 Hide
    anxiousinfusion , February 9, 2013 3:54 AM
    I'm surprised they're even earning that much.
  • 7 Hide
    Benihana , February 9, 2013 4:12 AM
    afrobaconI used to collect those things; I'm sure I have a "1.0" version disc laying around in some old CD case somewhere. I wonder if it's worth anything...

    Yeah! I've got that on a Floppy myself. :D 
  • 15 Hide
    shqtth , February 9, 2013 4:30 AM
    BenihanaYeah! I've got that on a Floppy myself.


    AOL was a good source for replacement floppies :p 
    My DOS boot disk is on one haha
  • 9 Hide
    JOSHSKORN , February 9, 2013 5:04 AM
    anxiousinfusionI'm surprised they're even earning that much.

    I'm surprised they aren't dead.

    AOL was the best thing...until the next thing came along...and then Facebook destroyed that...and now Facebook is destroying itself with its (lack of) privacy...
  • 4 Hide
    amk-aka-Phantom , February 9, 2013 5:25 AM
    Read www.infoworld.com/t/cringely/aols-dirty-little-business-plan-dial-dollars-212535 They still have a few million dial-up subscribers. Can you imagine that?!
  • 1 Hide
    JOSHSKORN , February 9, 2013 7:03 AM
    amk-aka-PhantomRead www.infoworld.com/t/cringely/aols- [...] ars-212535 They still have a few million dial-up subscribers. Can you imagine that?!

    Hmm, according to that article, they lost 10 percent to 'natural causes'...that doesn't surprise me. I bet most of these dial-up users are elderly...and we all know what happens after you get old...
  • 1 Hide
    JOSHSKORN , February 9, 2013 7:05 AM
    afrobaconI used to collect those things; I'm sure I have a "1.0" version disc laying around in some old CD case somewhere. I wonder if it's worth anything...

    http://glossynews.com/aol/article-1302.php
  • 2 Hide
    Fulgurant , February 9, 2013 12:31 PM
    amk-aka-PhantomRead www.infoworld.com/t/cringely/aols- [...] ars-212535 They still have a few million dial-up subscribers. Can you imagine that?!


    Yes, I imagine there are more dial-up users than we might think, on first blush. The idea seems absolutely archaic, but every once in while it's worth keeping in mind that the widespread availability of broadband is probably less than a decade old.

    Hell, I had a cell phone the size of a brick in 2001. It's amazing how quickly things change these days; how many decades, I wonder, did it take the whole of society to adopt far more important things like electricity or indoor heating/plumbing? There are probably people in the United States right now who still use an outhouse.
  • 0 Hide
    alidan , February 9, 2013 1:18 PM
    afrobaconI used to collect those things; I'm sure I have a "1.0" version disc laying around in some old CD case somewhere. I wonder if it's worth anything...

    depends on packageing and condition,
    heard they were going for 50-500$ as collectors items.
  • 2 Hide
    Elwenil , February 9, 2013 2:13 PM
    FulgurantYes, I imagine there are more dial-up users than we might think, on first blush. The idea seems absolutely archaic, but every once in while it's worth keeping in mind that the widespread availability of broadband is probably less than a decade old.


    It probably has more to do with the fact that AOL is notoriously hard to get rid of once they have their claws in you. There are probably people out there still paying for AOL and don't realize it. My aunt recently told me she still pays the monthly fee for access to her email. She is not Internet savvy and had no clue that she doesn't need to pay anyone anything to access her account online. I wasn't really surprised when I found out that she called and cancelled it twice and still they billed her her every month just like they did to me many years ago when I dropped AOL as an ISP and went DSL. AOL has always been a crap company and always will be.
  • 0 Hide
    ben850 , February 9, 2013 4:41 PM
    Anyone got any progz?
  • 0 Hide
    Fulgurant , February 9, 2013 6:14 PM
    Quote:
    It probably has more to do with the fact that AOL is notoriously hard to get rid of once they have their claws in you. There are probably people out there still paying for AOL and don't realize it. My aunt recently told me she still pays the monthly fee for access to her email. She is not Internet savvy and had no clue that she doesn't need to pay anyone anything to access her account online. I wasn't really surprised when I found out that she called and cancelled it twice and still they billed her her every month just like they did to me many years ago when I dropped AOL as an ISP and went DSL. AOL has always been a crap company and always will be.


    Yeah, I had that problem too, way back in the day. The offender wasn't AOL, though -- I think it was Earthlink. Bloodsuckers charged me for what must've been close to extra two years despite my constantly cancelling.

    Seems like that problem was an epidemic with dial-up providers. I guess the monthly charge was small enough that they could pull it off without most people noticing. Adds up, though.

    Anyway, life is war, unfortunately. Whether it's the bank, the DMV, an unscrupulous dial-up provider -- chances are, someone is going to screw you over in some small way, and fairly often, either through institutional ruthlessness or bureaucratic incompetence. For example, I've been registered under three separate spellings of my name with my municipality's Jury Selection Committee for the last five years or so -- and no matter what I do, I can't get them to fix the error. So I'm summoned to jury duty constantly, and it's a fight each and every time.

    C'est la vie. C'est la guerre.
  • 0 Hide
    0660650667072 , February 9, 2013 6:30 PM
    I live in a semi-rural area, and you would be surprised how many customers and clients still come in asking if we have AOL disks. Didn't have the heart to tell them I've been using one as a coaster for years. lol.

    In all seriousness, in our locale sometimes its the only thing people can get. ATT promised that the area would be all DSL/Cable by a certain date...well....that didn't happen (surprise huh?) and most folks in the northern part of the county can only get dial-up. What's even worse is these folks have trouble believing that dial-up modems are not standard on PC's anymore.

    So, I can see why they are still around, but to be posting THAT much revenue and to be making money is astounding!
  • 1 Hide
    tokencode , February 9, 2013 7:54 PM
    0660650667072I live in a semi-rural area, and you would be surprised how many customers and clients still come in asking if we have AOL disks. Didn't have the heart to tell them I've been using one as a coaster for years. lol.In all seriousness, in our locale sometimes its the only thing people can get. ATT promised that the area would be all DSL/Cable by a certain date...well....that didn't happen (surprise huh?) and most folks in the northern part of the county can only get dial-up. What's even worse is these folks have trouble believing that dial-up modems are not standard on PC's anymore. So, I can see why they are still around, but to be posting THAT much revenue and to be making money is astounding!



    At that point, you're better off with 3G wireless if possible. I can't imagine trying to browse today's web over dialup... most sites assume their main userbase has some type of broadband
  • 1 Hide
    0660650667072 , February 9, 2013 10:08 PM
    tokencodeAt that point, you're better off with 3G wireless if possible. I can't imagine trying to browse today's web over dialup... most sites assume their main userbase has some type of broadband


    Personally, I've got cable through the local company. But the county is large and some folks even just outside city limits have trouble getting broadband. As far as 3g wireless is concerned, yep; that's what I recommend for them, either that or satellite (but only as a last result there.)

    It's blows my mind the vast difference between internet connectivity options only available to some folks in these United States. As far as infrastructure is concerned in our country, we are way behind in terms of technology in bringing high speed internet to the majority of folks.
  • 0 Hide
    shadowfamicom , February 10, 2013 12:33 AM
    I have about 8 sealed stacks of 25 "AOL 3.0" Floppies. Bought them at a flea market last year. Guy sold them to me for $1.50 a stack. Not worth much right now, and even if they never increase in value they make great backup for my BIOS updates, DOS boot discs and my 90's Super Nintendo copier.
  • -1 Hide
    Anonymous , February 10, 2013 9:53 AM
    God bless AOL! AOL are the best! Yaaaaaaaaaaayyyyyyyyyyy for AOL!!
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