AOL has announced its first quarter earnings, which result in higher revenues than what is expected by analysts. The company reported $529.4 million in revenue during the quarter, which is 4% drop from previous year. The net income rose fourfold at $21.1 million, up from $4.7 million in the quarter last year. The total ad revenue increased by 5% to $330.1 million although US display ads fell 1% to $118.9 million.
The combined AOL properties display and third party revenue grows 10% year-over-year while the subscription churn rate the lowest in past seven years. The operating expenses decline quarter-over0quarter for the fourth consecutive quarter. The company reported EPS of $0.22 compares to $0.04 in Q1 2011. The company also reported that it has repurchased 1.8 million shares since its last earnings release at an average price of $17.65.