America Online (AOL) today announced its second quarter results with revenues of $531 million; the total revenue declined 2% which was lowest rate of decline in seven years. Global Advertising revenue grew 6%, its fifth consecutive quarter of year-over-year growth, reflecting: 2% year-over-year global display revenue growth, compared to a 1% and 5% decline on a reported and pro-forma basis, respectively in Q1.
9% year-over-year growth in combined AOL Properties Display and Third Party Network revenue, which totaled $251.3 million for the quarter while 19% growth in Third Party Network revenue, its fifth consecutive quarter of year-over-year growth. The lowest rate of search and contextual revenue decline in over three years of 1%, driven primarily by continued double digit growth in search revenue on AOL.com.
AOL’s operating income and Adjusted OIBDA was positively impacted by $96.0 million. Adjusted OIBDA of $94.6 million reflects an increase of $18 million year-over-year. Operating income was also positively impacted by the $945.8 million gain on sale of patents (net of transaction costs) in Q2. Subscription revenue trends continued to improve meaningfully with a 12% decline in subscribers, while monthly average churn of 1.7% was the lowest rate of churn in over a decade.
AOL’s chairman and CEO Tim Armstrong commented: “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.”