AOL reported its earnings for Q2 2012, with a continued decline in its quarterly revenues which are now down to $531 million, a 2% decline year-over-year. While it should have posted just a marginal profit, it posted a net profit of around $970 million, which was mostly because of the sale of its patents to Microsoft for around a billion dollars. It reported a gain on disposal of assets (intellectual property) of $945.8 million, which accounted for almost all of its net profit.
It ended Q2 2012 with around $1.468 billion in cash and cash equivalents, over a billion dollars more than it ended the last quarter with.
Coming to the revenue split, it reported a healthy 5% increase in its advertising revenues, while its subscription and other revenues continued to decline.
Its domestic AOL access subscribers continued to decline to around 3 million, while its unique visitors on AOL properties increased to around 112 million and unique visitors to AOL’s ad network increased to 186 million.
Advertising will eventually account for almost all of its revenues. In the last quarter, it made around $140 million in display ad revenue, and $87 million in search ad revenue. Its third party ad network revenue added up to $111 million.
Tim Armstrong, Chairman and CEO of AOL, said:
“Today’s results represent a significant milestone for AOL as we returned to Adjusted OIBDA growth for the first time in four years. The strong results and consumer performance we announced today are clear signs our strategic and operating efforts are translating into significant financial progress.”
via AOL – SEC