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AOL INC.
PART II—ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The following is a summary of segment operating results for the years ended December 31, 2014, 2013 and
2012:
Years Ended December 31,
2014 2013
Change
from 2013
to 2014
% Change
from 2013
to 2014 2012
Change
from 2012
to 2013
% Change
from 2012
to 2013
Revenues:
Brand Group ............. $ 770.9 $ 794.4 $ (23.5) (3)% $ 730.2 $ 64.2 9 %
Membership Group ....... 791.6 839.1 (47.5) (6)% 914.6 (75.5) (8)%
AOL Platforms ........... 1,080.4 785.0 295.4 38 % 644.1 140.9 22 %
Corporate and Other ....... — 0.6 (0.6) (100)% 1.5 (0.9) (60)%
Intersegment eliminations . . (115.7) (99.2) (16.5) (17)% (98.7) (0.5) (1)%
Total Revenues ............... $ 2,527.2 $ 2,319.9 $ 207.3 9 % $ 2,191.7 $ 128.2 6 %
Adjusted OIBDA:
Brand Group ............. $ 68.4 $ 40.2 $ 28.2 70 % $ (32.8) $ 73.0 N/A
Membership Group ....... 562.1 593.7 (31.6) (5)% 632.9 (39.2) (6)%
AOL Platforms ........... 4.4 (15.0) 19.4 N/A 7.3 (22.3) N/A
Corporate and Other ....... (127.6) (138.2) 10.6 8 % (194.8) 56.6 29 %
Total Adjusted OIBDA ........ $ 507.3 $ 480.7 $ 26.6 6 % $ 412.6 $ 68.1 17 %
Brand Group
2014 vs. 2013
Brand Group revenue decreased, reflecting a decrease in AOL Properties display revenue of $42.0 million,
partially offset by an increase in AOL Properties search revenue of $22.5 million. The decrease in AOL
Properties display revenue is primarily driven by a decline of $41.4 million related to shutdown or disposed
brands, including Patch, and declines in desktop impressions, partially offset by increased pricing on AOL
Properties. The increase in AOL Properties search revenues was driven by an increase in queries from search
marketing-related efforts.
Brand Group Adjusted OIBDA increased primarily due to cost savings initiatives, including cost savings
associated with the shutdown or disposed brands, including Patch, partially offset by increased TAC associated
with our search marketing-related efforts.
2013 vs. 2012
Brand Group revenue increased, reflecting an increase in AOL Properties display revenue of $41.1 million
and an increase in AOL Properties search revenue of $23.7 million. AOL Properties display revenue increased
primarily driven by increased impressions sold on AOL Properties. The increase in AOL Properties search
revenue was primarily driven by an increase in revenue per search.
Brand Group Adjusted OIBDA increased due to the year-over-year increases in revenue discussed above
and declines in personnel, primarily at Patch, and declines in marketing and consulting related costs as a result of
our continued cost reduction efforts, partially offset by an increase in TAC as a result of our marketing-related
efforts on search.
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