A few months ago there was talk about AOL’s CEO, Tim Armstrong getting the boot much like Carol Bartz did at Yahoo. That notion failed to take root with investors, but given the latest earning results from AOL, Armstrong may very well have to seek employment elsewhere.
According to recent earnings filings, AOL saw a 6% drop in revenue for the 3rd successive quarter—this despite an overall 8% in global advertising sales. In real dollar terms, the results mean that AOL had total 3rd quarter revenue of $532 million, down from the $564 million recorded last year. The poor earnings performance translated into a net loss of $2.6 million, a sharp decline from the $17.8 million in profits recorded in 2010.
AOL’s performance could have been worse though. The company’s saving grace was the 8% increase in ad revenue, much of which came through the company’s growing portfolio of web properties. Overall, AOL’s earnings trajectory looks downward bound and unless the announcement of a ‘new social tool’ bears some fruit, it’s going to be difficult to for Mr Armstrong to stay at the helm. Details of the new tool are being kept under wraps but given the state of AOL’s cash position, we should hardly expect it to be anything too innovative.
Do you think AOL new social tool will be enough to save the company from its downward spiral? Let us know what you think in the comments below.
source: http://www.sitetrail.com/2011/11/07/aols-revenue-is-down-6-to-532-million-last-quarter/
According to recent earnings filings, AOL saw a 6% drop in revenue for the 3rd successive quarter—this despite an overall 8% in global advertising sales. In real dollar terms, the results mean that AOL had total 3rd quarter revenue of $532 million, down from the $564 million recorded last year. The poor earnings performance translated into a net loss of $2.6 million, a sharp decline from the $17.8 million in profits recorded in 2010.AOL’s performance could have been worse though. The company’s saving grace was the 8% increase in ad revenue, much of which came through the company’s growing portfolio of web properties. Overall, AOL’s earnings trajectory looks downward bound and unless the announcement of a ‘new social tool’ bears some fruit, it’s going to be difficult to for Mr Armstrong to stay at the helm. Details of the new tool are being kept under wraps but given the state of AOL’s cash position, we should hardly expect it to be anything too innovative.
Do you think AOL new social tool will be enough to save the company from its downward spiral? Let us know what you think in the comments below.
source: http://www.sitetrail.com/2011/11/07/aols-revenue-is-down-6-to-532-million-last-quarter/