AOL (AOL) posted disappointing Q1 financial results.
The company reported revenue for the quarter of $664.3 million, down 23% from a year ago, and below the Street at $679 million. EPS of 32 cents a share was well short of the Street at 70 cents. OIBDA was $198.2 million, down 20%; free cash flow was down 55%, to $125.1 million.
Overall ad revenue was down 19% in the quarter, with display adds down 13%, and search and contextual adds off 27%. AOL subscribers fell 26%, resulting in a 28% year-over-year drop in subscriber revenue.
As noted in a previous post, the company this morning also announced an agreement to sale instant messaging service ICQ to Digital Sky for $187.5 million.
AOL this morning is down $1.08, or 3.9%, to $26.93.
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