AOL has reported better-than-expected results for the third quarter, with a sharp rise in ad revenue.
For the quarter, AOL posted revenue of $531.7 million, down 6% from a year ago, but above the Street at $524 million.
Advertising revenue actually grew 8%, to $317.7 million, but that was not enough to overcome the 22% drop in subscription revenue to $191.9 million.
AOL noted that the revenue decline in the quarter was its smallest in five years.
The company lost 2 cents a share in the quarter, a smaller loss than the 8 cents a share the Street had been expecting.
Adjusting OIBDA fell 48% to $87.2 million from $166.2 million a year ago.
The company said the drop in adjusted OIBDA – a measure of cash flow – reflects lower total revenue, continued investment in its Patch network of local news sites and other strategic areas and an $8.5 million increase in retention compensation related to acquisitions made in 2010 and 2011.
The company noted that it repurchased $130 million of common stock in the quarter – an impressive total for a company with a market cap of $1.4 billion.
The company noted that Patch now gets more than 10 million monthly unique visitors, and has over 10,000 bloggers.
AOL this morning is up 50 cents, or 3.8%, to $13.85.
