RealNetworks Posts Losses; Revenues Fall; Reaches 1 M Subscriber Mark


Net loss was $2.8 million, or 2 cents per share, for the quarter ended March 31, compared with a profit of $1 million, or 1 cent per share, a year earlier. Revenues fell to $46.9 million from $47.3 million a year earlier.

Additionally, RealNetworks said it has more than 1 million subscribers to its content subscription business. Subscription revenue, increased to $23.6 million, or a 4 percent increase, compared to the fourth quarter of 2002. For the second quarter of 2003, RealNetworks expects modest sequential revenue growth due to the anticipated increase in subscription and system infrastructure businesses.

Conference call going on: Rob Glaser, CEO: “Content subscription is now our largest business. Amount of news delivered in war increased five-fold from previous levels. In music, our focus in Q1 was on radio. Our RadioPass service is our fastest growing subscription.”

Paraphrase: We’re pleased to see Apple in the music space, which does a very good job at consumer services. Apple’s is best of both possible worlds, and helps the industry. Glaser is taking a swipe at Apple about buck-a-song-download, and is pushing on-demand radio as better than downloading services. Just launched a beta version of Game Arcade in German language, and more on the way.

On the software side, Glaser is stressing on how much progress has been made with mobile networks and handset manufacturers, and on relationships with Sony, Ericsson and Nokia…completely ignored the systems business–except as it relates to the wireless market.

No measureable impact on us of Yahoo’s entry into the market. Their product is a very small subset of what we offer.

Brian Turner, CFO: MLB subscriptions services will not be auto-renewed and might be a potential problem (my paraphrase). People sign on before the season begins…but until we sign up those customers again this season, we cannot hatch our eggs yet.

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