(Conference call at 7 PM EST today here) RealNetworks said it lost $5.3 million in Q4 of 2003, compared with a loss of $2.45 million in the year-ago quarter. Excluding certain items, such as $1.6 million in costs related to an antitrust suit against Microsoft, RealNetworks lost $3.8 million. Q4 sales rose 17 percent to $54.1 million from $46 million.
Consumer subscription revenues were $30.1 million for the quarter, a 33 percent increase from year-ago quarter. Revenue from technology products and services was $12.8 million, which represents a decrease of 7% from the prior year and a decrease of 17% from the third quarter of 2003.
It also grew its subscriber base to more than 1.3 million paying subscribers by year-end, up 44 percent from the year-ago quarter and up 13 percent from the third quarter of 2003.
Music: For the first time, the company has broken down is segment contributions of music and gaming: Its music business, including subscriptions, premium radio and individual song sales, grew 71 percent to $7.9 million in the fourth quarter, up from $4.7 million in the third quarter. Paying subscribers to its music services, including RadioPass and Rhapsody, grew to over 350,000 in Q4, up 40 percent from the third quarter of 2003.
Gaming: Revenue from its RealArcade gaming business, which includes subscriptions, game sales, and advertising, grew 56 percent to $12.2 million in full year 2003, up from $7.8 million in 2002.
TheStreet.com: RealNetworks said its gross profit margin slipped to 62% from 64% a year earlier as the company’s product mix moved toward the lower-margin, faster-growing consumer side. The company expects to return to profitability by the end of 2004, excluding suit costs, as margins should stabilize in future quarters.
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