During Wednesday’ s second quarter earnings call, AOL CEO and Chairman Tim Armstrong continued to express his support for AOL’s local news network, Patch. Armstrong said that the 850-plus sites for Patch have projections of $40 to $50 million in revenue for 2012, according to paidContent. Amstrong told analysts and investors, “Revenues are growing quickly and costs are coming down.”
Patch is still in the red after more than $200 million in investment since 2009 but Armstrong says their new data-driven product will change the way people view Patch’s local news network. Armstrong stated, “When you see it, you’ll understand.”
During the call, Armstrong also discussed the upcoming changes being planned for Patch, as it has also been reported that its network is being rebuilt to focus less on hyperlocal news and more on listings and commerce.