AOL (AOL) Beats Q4 Views, But is Losing in Key Mobile Sector
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Shares of AOL (NYSE: AOL) are indicated nearly 5 percent higher Wednesday morning following stronger-than-expected fourth-quarter earnings results.
Revenue for AOL fell 3.2 percent from $596 million during the same quarter last year to $576.8 million. While ad revs grew 10 percent, both subscription and "other" revs saw marked declines.
Net income dropped 66 percent to $22.8 million, or 23 cents per share.
The Street was expecting revs of $573.1 million and EPS of just 16 cents.
Monthly average churn as at 2.2 percent.
Leading the gain in ad revs was display, with an overall 15 percent increase in revs. Search and contextual revs dropped 8 percent in the quarter. "Other" revenue declines primarily reflect lower mobile carrier revenues. Revenue from mobile carriers represented 38 percent of total “other revenue” in the fourth quarter of 2010 and 17 percent in the fourth quarter of 2011.
Domestic subs fell 15 percent to 3.272 million, while ARPU was slightly lower at $17.87. Unique visitors to AOL Properties fell 4 percent to 107 million.
AOL also burned through about $400 million in cash through 2011.
The company did not issue guidance.
Revenue for AOL fell 3.2 percent from $596 million during the same quarter last year to $576.8 million. While ad revs grew 10 percent, both subscription and "other" revs saw marked declines.
Net income dropped 66 percent to $22.8 million, or 23 cents per share.
The Street was expecting revs of $573.1 million and EPS of just 16 cents.
Monthly average churn as at 2.2 percent.
Leading the gain in ad revs was display, with an overall 15 percent increase in revs. Search and contextual revs dropped 8 percent in the quarter. "Other" revenue declines primarily reflect lower mobile carrier revenues. Revenue from mobile carriers represented 38 percent of total “other revenue” in the fourth quarter of 2010 and 17 percent in the fourth quarter of 2011.
Domestic subs fell 15 percent to 3.272 million, while ARPU was slightly lower at $17.87. Unique visitors to AOL Properties fell 4 percent to 107 million.
AOL also burned through about $400 million in cash through 2011.
The company did not issue guidance.
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