AOL’s booming video ads business helped the company overcome some of the drag from its ongoing Patch issues in the third quarter. Overall, the company announced today a 14 percent year-over-year jump in ad revenue to $386 million in the third quarter.
The acquisition of Adap.tv, which closed in September, accounted for $17.6 million in revenue, AOL said. The startup, which operates an online video ad exchange and server, assisted in the growth of AOL’s Third Party Network, where revenue was up 32 percent year over year.
AOL, which paid $405 million for Adap.tv, is No. 1 in the online video ad space, according to eMarketer.
Today’s earnings results sparked an AOL rally, sending shares up about 8 percent to $41.85 by noon. Still, profits were limited to $2 million because of restructuring costs, mostly from Patch, AOL's flailing local news network of sites.
Here is a more detailed look at how AOL’s ad business is doing:
-Only $2 million in profits, reflected a 90 percent decline.
-Display revenue hit $141.9 million, a 5 percent rise from the same period a year ago.
-Search revenue of $95 million represented a 3 percent increase from the year-ago quarter.
-AOL’s Brand Group, which accounts for Huffington Post and other online media properties, reported $192.5 million in revenue, a 9 percent jump year over year.