New York — For the first time since 2008, AOL reported increased advertising revenue in its second quarter 2011 earnings report. The quarterly report was weaker than expected, however, pushing shares down more than 25 percent.
AOL didn’t share in a day of price recovery, as the company’s stock lost over half their value so far in 2011. Shares fell $3.88 to close at a 52-week-low of $11.19 Tuesday.
AOL’s global advertising grew 5 percent over the same period last year. The increase was driven largely by the increase in display advertisement revenue, led by the company’s acquisition of the Huffington Post, which increased 16 percent in the U.S. Still, the revenue gains were not enough to make up for the decline in subscriptions to their internet service, which fell 23 percent.
“AOL’s return to global advertising growth for the first time since 2008 reflects the hard work of our team and another meaningful step forward in the comeback of the AOL brand,” said Tim Armstrong, chairman and CEO. “AOL is singularly focused on becoming the next great media company for the digital age and we have positioned the Company’s best people, technology and assets in front of some of the largest opportunities on the internet.”
Related Links:
http://tinyurl.com/3mk9ozd (AOL Press Release)
http://tinyurl.com/3wna97p (AOL Q2 report)
Photo by flickr user psd, used under Creative Commons license
