UPDATE: AOL Posts Lower Q2 Profit, Revenue Beats Street View

AOL

reported lower second-quarter profit. However, the company posted better-than-expected quarterly revenue. The New York-based company posted a quarterly profit of $28.2 million, or $0.34 per share, versus a year-ago profit of $28.5 million, or $0.35 per share. Its revenue surged 12% to $606.8 million. However, analysts were expecting a profit of $0.44 per share on revenue of $596 million. The company's global advertising revenue rose 20% to $451.7 million, while third-party network revenue jumped 60%. AOL's search advertising revenue climbed 6%, while global display revenue declined 1% in the quarter. Internet-access subscription revenue also tumbled 7% to $155.1 million in the quarter. Domestic AOL subscriber monthly average churn came in at 1.6% in the quarter, versus 1.4% monthly average churn in the year-ago quarter. General and administrative expenses increased $3 million year-over-year in the quarter, while adjusted OIBDA jumped 12% y/y. During the quarter, AOL repurchased 1.6 million shares of common stock at an average price of $36.84. Tim Armstrong, AOL Chairman and CEO said, “AOL grew consumer usage, video, programmatic advertising, branded content, and ad pricing throughout the first half of 2014, and we will continue to make AOL one of the best operating companies in our industry.” AOL shares gained 3.59% to $40.40 in pre-market trading.