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For First Time in 8 Years, AOL Revenue Increases

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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  • CheesyHotDogPuff
    Say what? Aol, getting revenue?
    Reply
  • A Bad Day
    I still have an AOL free 500 hours CD. I wonder if I could still use it...
    Reply
  • afrobacon
    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...
    Reply
  • anxiousinfusion
    I'm surprised they're even earning that much.
    Reply
  • Benihana
    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
    Reply
  • shqtth
    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
    Reply
  • JOSHSKORN
    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...
    Reply
  • amk-aka-Phantom
    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?!
    Reply
  • JOSHSKORN
    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...
    Reply
  • JOSHSKORN
    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
    Reply