Tim Armstrong

Video, mobile strengthen AOL Q1 earnings

The year-over-year increase comes largely from a 19% boost in advertising sales on third-party sites.
May 11, 2015

AOL’s first-quarter earnings show its investment in online advertising is serving it well.

The company saw revenues up 7% year-over-year to $625.1 million for the quarter ending March 31, according to the company’s earnings’ report, issued May 8. Adjusted earnings per share sit at $0.34.

The growth in revenue was driven by 12% growth in global advertising and other revenue.

AOL saw a slight dip (4%) in earnings to $130.5 million, compared to Q1 2014, on sites which it owns, including flagship news and entertainment site, The Huffington Post. The company said part of that was due to its troubled local news content platform, Patch. AOL sold the majority share in Patch to Hale Global last January.

By comparison, ad growth on third-party sites grew by 19%, to $231.6 million (up from $194.7 million in Q1 2014), “reflecting growth in the sale of premium formats, including video, across our programmatic platform,” according to the company.

Overall, CEO Tim Armstrong credited continued growth in its consumer base, as well as video, mobile and programmatic advertising for driving the numbers; however, a detailed breakdown was not available to indicate how big of a role video played in earnings.

AOL recently presented at NewFronts where it announced its new “Content 365” strategy,  which eschews network TV-style blocks of season premieres for a constant roll-out of programming designed to serve users’ changing viewing habits as they move through the day.


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