While many tech industries have come and gone since the tech bubble 2000s, an old stalwart of the digital age is not only surviving, but thriving. AOL, Inc. (AOL) posted quarterly earnings on Aug. 7, and announced that they both expanded their empire further with a major acquisition and beat analyst expectations.
AOL’s stock jumped in turn. This follows a general uptick for tech in general, as analysts are becoming more confident that internet companies have begun to fully monetize the mobile experience.
For their second quarter 2013 earnings report, AOL reported net income of $28.5 million, or $0.35 per share, versus the $25.9 million, or $0.32 per share, from the same period a year ago. Revenue for the quarter was $541 million, as compared to $531 million from the previous year. Analysts were expecting a profit of $0.32 per share on revenues of $539.7 million.
Ad revenue for the company grew 7 percent to a total of $361 million. Also of note is the company announced that they were buying video ad company Adap.tv for $405 million in cash and stock.
Web ad sellers have been soaring as of late. Facebook Inc. (FB) has shot up past its $38 IPO since a massively successful earnings report on July 25, and is up 56 percent on the month. Local review site Yelp Inc. (YELP) is up 48.93 percent on the month to hit $50.80 a share. And while Google, Inc (GOOG) is down this month, they’re still the undisputed kings of search, and are up 23.96 percent on the year.
AOL was founded in 1983, and is practically a relic of the old internet. But while they haven’t exploded along with Yelp and Facebook, they are proving resilient, and riding out the transition to mobile advertising quite nicely. AOL CEO Tim Armstrong has zeroed in on increasing AOL's web ad presence in his tenure. He engineered the acquisition of the Huffington Post in 2011 for $351 million to gain content, and now with the acuisition of Adap.tv he seeks to broaden AOL's ability to compete with Google in video advertising. That deal is expected to increase AOL's video ad revenue two fold.
AOL is up 1.69 percent on the report to hit $36.78 a share.
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