AOL First-Quarter Earnings Drop, Revenue Rises
The online company, led by CEO Tim Armstrong, posted a 16 percent increase in advertising revenue, but charges were a drag on the bottom line.
AOL on Wednesday reported improved first-quarter revenue, but lower earnings.
The online company, led by CEO Tim Armstrong, said its earnings amounted to $9.3 million, compared to $25.9 million in the year-ago period, down 64 percent. The company said charges worth $22 million tied to software development costs dragged down the earnings.
Revenue rose 8 percent to $583.3 million, while advertising revenue climbed 16 percent.
The company has been turning around its business, partly with the help of new content initiatives.
Said Armstrong: "The first quarter marks the fifth consecutive quarter of consumer, revenue and adjusted [operating income before depreciation and amortization] growth. AOL’s investment in global media and technology platforms is allowing AOL to compete on a global scale."