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United Online Beats Expectations

Los Angeles Business Journal Staff

United Online Inc. shares soared more than 20 percent Wednesday morning, a day after the online services provider reported better-than-expected first quarter earnings on revenue growth from some recent acquisitions.

After Tuesday’s market close, the Woodland Hills company reported net income of $16.4 million (20 cents per share), compared with $12.1 million (18 cents) a year ago. Revenues grew 116 percent to nearly $264 million.

After charges, the company, which offers Internet access and runs the floral site FTD.com, had earnings of 35 cents per share. Analysts surveyed by Thomson Reuters on average expected the company to report earnings of 30 cents on revenue of $261 million.

Revenues at the FTD unit, which the company didn’t own a year ago, were $148 million. The company said it offset a 2 percent advertising revenue decline at Classmates.com by getting more people to sign up for paid accounts on the social networking site. That produced 13 percent revenue growth in that unit to $58.5 million. Internet access and other communications services contributed $57 million to the quarter, down 18 percent from a year ago.

“United Online delivered strong financial results within a challenging macro environment, which underscores the value proposition of our consumer products and services and further demonstrates the resiliency of our business model,” Chief Executive Mark R. Goldston said in a statement.

United Online shares were up $1.23, or 21 percent, to $7.12 in midday trading on the Nasdaq.


  February 8 - 14, 2010
LA Business News
Convention-al Appeal
New downtown hotels and a bustling L.A. Live scene are hailed as big convention business boosters.
Owner Back in the Saddle at Santa Anita Race Track
A deal with creditors will allow owner Frank Stronach to hold on to the reins of Santa Anita Park.
Unions Dropping Anchor in Long Beach?
The Port of Long Beach’s use of project labor agreements may maroon nonunion contractors.
Local Latinos Make Chinese Connection
A contingent of Latino officials from L.A. cities overcame culture clash on a recent trip to China.
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