AOL revenue jumps on advertising sales, CBS earnings drop

May 10 23:59 2015

AOL shares rose nearly 9% in morning trading Friday after the company reported first quarter revenue that beat Wall Street expectations. The company reported revenue of $625.1 million, up 7% from $585.3 million for the same period last year, due primarily to growth in global advertising. That beat analyst estimates for revenue of $597.4 million.aol_office_1

AOL earned $7 million in the quarter, compared to $9.3 million in the year-ago quarter. Adjusted earnings were 34 cents a share. Analysts expected earnings of 36 cents a share. “AOL grew its consumer base strongly and saw continued strength in video, mobile and programmatic advertising, while we also updated the structure and capabilities of the company,” CEO said Tim Armstrong said in a company statement.

CBS Corp. said Thursday its first quarter earnings fell 16% as sports programming costs rose and revenues dipped at CBS Network and its local broadcasting stations The New York-based media company reported $394 million in net income, down from $468 million a year ago. But earnings per share of 78 cents beat analysts’ estimate of 75 cents, according to Zacks Investment Research. Shares rose 1.3% to $62.04 in after-hours trading. Company-wide revenue slipped 2% to $3.5 billion.

Revenue at the entertainment unit, which includes CBS Television Network, CBS Television Studios and the interactive business, fell 1.7% to $2.26 billion as content licensing and distribution revenues declined. Its operating income fell to $346 million from $420 million a year ago due to “a higher investment in sports and entertainment programming,” it said. The cable networks unit, which operates Showtime, CBS Sports Network and Smithsonian Networks, reported a slight decline in revenue — $539 million vs. $537 million a year ago. Domestic licensing revenues fell during the first quarter, it said. Publishing revenue from its Simon & Schuster division fell 5% to $145 million as it registered lower book sales. The local broadcasting stations that CBS Corp. owns generated $596 million in revenue, down 5% as advertising sales dipped.