AOL misses by $0.05, beats on revs
Reports Q4 (Dec) earnings of $0.43 per share, $0.05 worse than the Capital IQ Consensus Estimate of $0.48; revenues rose 13.3% year/year to $679 mln vs the $655.86 mln consensus.
- Global advertising revenue grew 23% year-over-year reflecting: 63% growth in Third Party Network revenue driven by growth in the sale of premium formats across AOL's programmatic platform and by the inclusion of revenue from Adap.tv.
- Third Party Network Revenue grew 20% excluding Adap.tv.
- 7% growth in global display revenue driven by improved pricing related to growth in the sale of premium formats across AOL's properties.
- 2% decline in global search revenue driven primarily by fewer search queries resulting from a decline in domestic AOL subscribers.
- Subscription revenue declined 10% year-over-year and domestic AOL subscriber monthly average churn was 1.3% in Q4 2013 compared to a 10% decline year-over-year in subscription revenue and 1.8% monthly average churn in Q4 2012.