RealNetworks Swings To A Profit In 3Q - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

RealNetworks Swings To A Profit In 3Q

Net income increased to $11.2 million compared to a net loss of $7 million for the year-ago period.

RealNetworks Inc. on Thursday said it swung to a profit in the third quarter, as revenues were boosted, in part, by higher sales in its music and games subscription services.

The Seattle-based company said net income, based on generally accepted accounting principles, increased to $11.2 million, or 6 cents a share, compared to a net loss of $7 million, or 4 cents a share, in the same period a year ago. Revenues rose 20 percent to $82.2 million from $68.3 million a year ago.

The company reported having a total of 2.2 million subscribers to its paid digital media services at the end of the quarter, up from 1.55 million a year ago. The latest number included 1.3 million paid subscribers to it music services.

The company has partnered with wireless carriers Sprint and Cingular Wireless to offer its game and other services over mobile phones.

This month, Microsoft agreed to pay RealNetworks $761 million to settle an antitrust suit. As part of the deal, Microsoft agreed to integrate RealNetwork's music-subscription service, Rhapsody, throughout its MSN properties and its WindowsMedia.com entertainment guide.

"Together with our partners we're continuing to expand our ability to offer digital music, video and games to consumers wherever and whenever they want them," Rob Glaser, chairman and chief executive of RealNetworks, said in a statement.

In its consumer segment, which includes music and games, RealNetworks reported a 28 percent increase in revenues to $71.8 million from $56 million a year ago. Music revenues increased 39 percent to $25 million, and games were up 62 percent to $14.7 million.

In the fourth quarter, RealNetworks expects revenues between $81 million and $85 million. The company does not expect to see any material impact in the quarter from the Microsoft deal. For the full year, the company expects revenue to be between $322.5 million and $326.5 million, with earnings per share between $1.51 and $1.57.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Slideshows
10 Things Your Artificial Intelligence Initiative Needs to Succeed
Lisa Morgan, Freelance Writer,  4/20/2021
News
Tech Spending Climbs as Digital Business Initiatives Grow
Jessica Davis, Senior Editor, Enterprise Apps,  4/22/2021
Commentary
Optimizing the CIO and CFO Relationship
Mary E. Shacklett, Technology commentator and President of Transworld Data,  4/13/2021
Register for InformationWeek Newsletters
Video
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll