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RealNetworks Posts Net Loss

By Staff Author | August 1, 2008

RealNetworks’ net loss for Q2 totaled $1.3 million, but revenue grew 12% compared with the year-ago quarter.

The revenue growth was attributed to a 40% increase in games revenue, a 15% increase in media software and services revenue, a 5% increase in technology products and solutions revenue and a 1% increase in music revenue. Revenue totaled $152.6 million.

In a conference call, CEO Rob Glaser said this is the most turbulent macro-economic environment the company has seen since it was founded 14 years ago. But the company still expects 2008 will be a year of record revenue and adjusted EBITDA will be up substantially from 2007.

During the quarter, RealNetworks’ ringback tone business saw momentum with the 5-year contract extension with Indonesian operator Excelcom. Ringback tone and music-on-demand subscribers rose 38% year-over-year.

Intercarrier messaging volume increased to nearly 2.5 times the level of the year-ago quarter, the company said. The number of Helix-enabled handsets grew 56% year over year from 24 million to nearly 38 million.

In June, RealNetworks announced the availability of V CAST Music with Rhapsody for Verizon Wireless subscribers. Subscribers to the service can buy music directly from their phones and have the songs delivered over the air to their handsets. Tracks also are downloaded in DRM-free MP3 format to the customer’s PC.


Filed Under: Carriers

 

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