Thursday, August 6, 2009
United Online's Dialup Drying Up, But Profits Up
Woodland Hills-based United Online move to diversify away from its dial-up business appears to paying off, at least in profits, as the firm reported late Wednesday that it had $68.5M in income on $260.8M in revenues. In its quarterly results, the firm continued to see a slide in the firm's dial up business, down to $54.1M for Q2, down 17% from Q2 last year. United Online operates NetZero and other, dial-up Internet access services. More than 57% of United Online's revenues are now coming from floral firm FTD, which United Online purchased in 2008. Classmates Media revenues totaled $58.2M, roughly flat from last year. United Online said paing customers in its Communications segment, the firm's dialup business, were down by 121,000 subscribers, and are now at 1.5 million subscribers as of June 30th.