Patch Is Good for AOL After All. Maybe?

AOL reports that the hyper-local news network helped with growth in fourth quarter ad revenue

Gianna Palmer is a guest blogger for Betabeat.

AOL released its fourth quarter earnings report today and not shockingly, profits are still falling. Q4 net income fell 66 percent to $22 million (23 cents a share) and revenue slipped 3 percent to $576.8 million. CEO Tim Armstrong seemed pretty happy, though.

“AOL took a large step forward in Q4 and I am very pleased with the way we ended the year,” Armstrong said.

At least one reason for Armstrong’s cheery outlook: AOL saw its ad revenue increase 10 percent to $363.8 million. To what does it attribute this growth? In part: its hyperlocal news effort Patch. Read More


  1. guest says:

    y-o-y advertising grew because Patch launched more then half of it’s now live sites in 2011 – if you look at advertising compared to the number of patches that existed, you will see that it is all smoke and mirrors

  2. Mikeshapiro says:

    Taking all the costs involved with Patch (the layers of overhead, benefits, 401K, etc) and spreading them equally among the Patch sites, there is no way any of them are profitable.  If you look at one Patch site and only take into account the expenses for that specific Patch site, it could be profitable.