Our new corporate overlords (that would be AOL) have just released their Q3 earnings report, and it’s a mixed bag.
Total revenues for the quarter were down 26 percent, from $763.9 million to $563.5 million, in the previous year. This slightly tops Wall Street expectations of $557 million.
Profit, meanwhile, surged thanks to cost-cutting and the gains on the sales of ICQ and its Kayak investment. Net income increased to $171.6 million, or $1.60 per share, from $74.0 million or $0.70 per share last year.
(We reported on AOL’s Q2 2010 earnings here if you would like to compare).
Advertising revenue fell 27 percent to $292.8 million on declines in search, display and third-party ads, AOL reported. Subscription revenue dropped 26 percent to $244.8 million.
AOL says it spent $97 million on, well, us, 5Min Media and Thing Labs, and that it could spend up to $23 million more on earnouts/retention bonuses over the next three years.
A couple of days ago, the company announced that it sold buildings and land on its Dulles campus, netting it $144.5 million in cash. Below are the earnings slides for the quarter.
AOL is a global advertising-supported Web company, with display advertising network in the U.S., a substantial worldwide audience, and a suite of popular Web brands and products. The company’s strategy focuses on increasing the scale and sophistication of its advertising platform and growing the size and engagement of its global online audience through leading products and programming. On March 13, 2008, AOL Internet division announced their plans to buy social network Bebo for $850 million in cash. History of Aol: AOL was...
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