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Thursday, Apr 25, 2024

United Online Reports Lower Profits

United Online Inc. reported a 63 percent decrease in net profits in the fourth quarter when compared with the same quarter a year ago. The Woodland Hills-based Internet and media services provider posted a net income of $4.6 million, or $0.07 per diluted share, on revenues of $130.8 million for the quarter ending Dec. 31. That is a significant decrease from the net income of $12.4 million, or $0.19 per diluted share, on revenues of $130.2 million reported for the fourth quarter in 2005. The drop in net profit is due to the company taking a hit of $8 million in impairment charges associated with write-downs on the company’s voice-over-Internet Protocol business and of goodwill and intangible assets from the March 2005 acquisition of Photosite. For the full year, United Online had a net income of $42.2 million, or $0.64 per diluted share, on revenues of $522.7 million. That is about a 10 percent drop from the net income of $47.3 million, or $0.74 per diluted share, on revenue of $525 million for 2005. Growth in the company’s content and media segment drove revenue growth in the fourth quarter, said United Online Chairman and CEO Mark Goldston, in a statement. “This achievement highlights the significant progress we made diversifying our business in 2006,” Goldston said. United Online services include NetZero internet access, Classmates.com social networking site, and brand loyalty site MyPoints.

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