The new AOL relies on content and ads to drive revenue, and content and ads are delivering.

AOL reported net income of $35.7 million for the fourth quarter 2012, which was in-line with analyst expectations.

aol-revenue-growthNet revenue was $599 million, a four percent increase over last year’s $576 million. As AOL points out, this is the first time in eight years that it reported year-over-year revenue growth.

Translation: Things are looking good in Tim Armstrong’s house.

The big thing analysts were paying attention to this time around was AOL’s domestic display ads business, which dropped three percent this quarter even as AOL’s larger ad business increased by 13 percent and its search business improved by 17 percent.

AOL’s dial-up service (which, yes, still exists) pulled in $174.2 million, a 10 percent drop year-over-year.

Overall, CEO Tim Armstrong is pleased.

“AOL has strong momentum entering 2013 and is positioned to continue on our growth path by executing our strategy to build the next generation media and technology company,” Armstrong said in a statement.


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