AOL's first quarter wasn't too good and the future isn't too bright
AOL’s trimestral financial report is out and the results are mixed, much to the investors’ confusion.According to AOL’s data, in the first three months of 2014, the company earned $583.1 million (€418.62 million), or $0.11 per share, a surprisingly small sum. The company’s net income was of $8.7 million (€6.25 million), a 66 percent drop from last year’s results and a worrying sum since the company is quite close to starting to report losses.
Even so, the numbers managed to beat Wall Street analysts’ estimates, who weren’t too optimistic about how AOL did in the year’s first quarter.
It should be mentioned, however, that the company’s numbers took a bit of a hit due to restructuring costs of $12 million (€8.62 million) and an additional $10 million (€7.18 million) asset impairment charge.
During the first quarter, the company made a big acquisition – Convertro Inc., a provider of multi-touch attribution modeling technology for brands and agencies, for which it paid approximately $101 million (€72.51 million).
“Q1 marks the 5th consecutive quarter of consumer, revenue and Adjusted OIBDA growth. AOL’s investment in global media and technology platforms is allowing AOL to compete on a global scale,” said Tim Armstrong, AOL chairman and CEO.
On March 31, 2014, AOL had $124 million in cash and equivalents and outstanding borrowings of $30 million under the company’s $250 million senior secured revolving credit facility agreement.