Web service company AOL Inc. (AOL) reported a sharp plunge in second-quarter net income attributable to shareholders to $28.5 million, or $0.35 a share, from last year's $970.8 million, or $10.17 a share. On average, 16 analysts polled by Thomson Reuters expected earnings per share of $0.32 for the quarter. Analysts' estimates typically exclude one-time items.
AOL's second-quarter 2012 operating income, net income and per-share earnings were favorably impacted by $1.04 billion, $970 million and $10.16, respectively resulting from its patent transaction with Microsoft. Excluding this impact, operating income, net income and EPS grew significantly.
The firm clocked total revenues of $541.3 million in the quarter, versus $531.1 million a year earlier. Analysts estimated revenues of $539.66 million for the quarter.
In addition, AOL reached an agreement to acquire Adap.tv, Inc., a global, programmatic video advertising platform for the world's largest brands, agencies, and publishers, for AOL common shares with an aggregate value of about $83 million and estimated cash consideration of some $322 million, subject to adjustment for working capital and reduction for indebtedness and transaction expenses of Adap.tv that remain unpaid as of closing. AOL expects to close the acquisition in the third quarter of 2013.
On July 1, 2013, AOL's board authorized a $150 million share repurchase, bringing the company's remaining repurchase authorization to $200 million.
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