(Compares with estimates; Adds details, share move)
Aug 6 Digital media and entertainment company
AOL Inc reported better-than-expected quarterly revenue,
helped by a 60 percent jump in advertising revenue in its
AOL, whose shares were up nearly 4 percent in premarket
trading, also said it approved a $150 million share buyback
Advertising has become a major revenue stream for AOL, the
owner of the Huffington Post news website and the TechCrunch
blog, especially as the company moves away from dial-up
Advertising revenue increased 20 percent to $451.7 million,
in the second quarter ended June 30, helped by the acquisition
of video advertising platform Adap.tv and increased
Advertising revenue from AOL's third party platform, which
includes "programmatic" and advertising offerings to marketers
and publishers, jumped to $194.3 million.
"Programmatic" advertising helps buy and sell online ad
spots through bidding via computers, based on a set of
Total revenue rose 12 percent to $606.8 million from $541.3
million. Analysts on average had expected $595.5 million,
according to Thomson Reuters I/B/E/S.
Net income attributable to AOL fell to $28.2 million, or 34
cents per share, for the second quarter ended June 30, from
$28.5 million, or 35 cents per share, a year earlier.
Excluding items, it earned 45 cents per share, a cent more
than analysts' average expectation.
Results were hit by a $7.4 million increase in amortization
of intangible assets and another $7.2 million rise in
stock-based compensation, AOL said.
AOL shares closed at $39 on the New York Stock Exchange on
Tuesday. They have fallen 11.2 percent since the company
announced disappointing first-quarter results in May.
(Reporting by Mridhula Raghavan in Bangalore; Editing by