10-K Watch: Infospace’s Mobile Revenues and Expenses

This is from the 2005 annual report for Infospace, filed last week with the SEC…excerpts from it:
— Revenues from our Mobile business increased to $157.4 million in the year ended December 31, 2005 from $92.5 million in the year ended December 31, 2004, primarily attributable to an increase in sales of our media download products, such as ringtones and graphics and, to a lesser extent, sales of games as a result of our acquisition in the second half of 2004 and early 2005 of three mobile gaming companies.
— Mobile accounted for 46.3 percent of 2005 revenues for Infospace, compared to 37.1 percent in 2004 and 21.1 percent in 2003.
— Content and distribution expenses increased by $52.7 million to $145.4 million (or 42.7% of revenues) in 2005 as compared to $92.7 million (or 37.1% of revenues) in 2004. The absolute dollar and percent of revenue increase was attributable to the growth from sales of our content and media download products to our mobile customers, including our higher cost labeltones or MP3-like quality ringtones, which require licensing and royalty payments to third parties and, to a lesser extent, revenue growth from our online search and directory distribution partners in which we have revenue sharing arrangements where we private label our search products for our partners to offer on their own Web properties.

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