Earnings: United Online's Q2 Income Gains 40 Percent; Revs Fall 3 Percent On ISP And Email Services

United Online (Nasdaq:UNTD), the Woodland Hills, CA-based owner of social net Classmates.com and ISPs Juno and NetZero, reported Q2 profits gained 40 percent to $16.2 million from $11.6 million, year-over-year. Revenues for the quarter, however, were pulled down 3 percent, largely due to its lagging ISP and email services. Revenues fell to $131.4 million from $134.9 million in Q206. Other results from United Online’s report included:

Content & Media: This segment, which includes Classmates.com and online marketing firm MyPoints.com, now represents 38 percent of total revenues and nearly 55 percent of total pay accounts. Revenues for this unit were up 29 percent to $49.7 million from $38.7 million. The rise was mainly due to consolidated ad revenues of $34.3 million, an increase of 32 percent versus the year-ago quarter.

Communications: The division that houses its ISP and email services saw revenues decrease 15 percent to $81.7 million from $96.2 million a year ago.

Cash Flows: United Online generated $35.8 million in cash flows from operations and $31.1 million in free cash flow. Cash balances at by the end of the quarter on June 30, rose to $191.4 million from $168 million at March 31, including cash, cash equivalents and short-term investments. Earnings release | Webcast (5:00 p.m. EDT)

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