AOL (AOL) Tops Q4 EPS by 20c

AOL (NYSE: AOL) reported Q4 EPS of $0.92, $0.20 better than the analyst estimate of $0.72. Revenue for the quarter came in at $710.3 million versus the consensus estimate of $723.01 million.

• Global advertising and other revenue grew 8% year-over-year reflecting:
  • 16% growth in Third Party Properties revenue, driven by growth in the sale of premium formats, including video, across our programmatic platform.
  • 6% decline in AOL Properties display revenue primarily due to the absence of approximately $12 million in revenue from disposed or shuttered brands in 2013, including Patch. Excluding these impacts, display revenue grew 1% in Q4 2014 driven by improved pricing partially offset by lower desktop impressions.
  • 6% growth in AOL Properties search revenue, driven by an increase in revenue per search.
  • 48% growth in other revenue, driven by increased revenue from platform and service fees.
  • Year-over-year comparisons reflect the inclusion of Adap.tv, acquired in September 2013, for both periods.
• Subscription revenue declined 5% year-over-year as 6% growth in average monthly subscription revenue per AOL subscriber (ARPU) partially offset an 11% decline in subscribers. Domestic AOL subscriber monthly average churn improved sequentially to 1.3% in Q4 2014 and was flat year-over-year.

For earnings history and earnings-related data on AOL (AOL) click here.

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