News Column

Buyback announcement and solid results send AOL shares up

August 7, 2014

MRIDHULA RAGHAVAN



DIGITAL giant AOL reported a better-than-expected boost to quarterly revenue during the second quarter, helped by a 60 per cent jump in advertising revenue in its third-party platform.


The firm's share price rocketed by more than 7.5 per cent during the day. The results also came with the announcement of a $150m (89.1m) share buyback programme.


Advertising has become a major revenue stream for AOL, the owner of the Huffington Post news website and the TechCrunch blog, especially as the company moves away from dial-up subscription service.


Advertising revenue increased 20 per cent to $451.7m during the quarter ending 30 June, helped by the acquisition of video advertising platform Adap.tv and increased "programmatic" advertising.


Advertising revenue from AOL's third-party platform, which includes "programmatic" and advertising offerings to marketers and publishers, jumped to $194.3m.


Programmatic advertising helps buy and sell online ad spots through bidding via computers, based on a set of pre-decided rules.


Reuters


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Source: City A.M. (UK)


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