Friday, May 06, 2005

United Online Q1-2005 results

Reuters Uncut
Motley Uncut

United Online (NASDAQ: UNTD) announced its Q1 results on May 3rd 2005. It said that its quarterly profit fell, but revenues rose 21 percent from non-access business such as online advertising. I'm putting together a few stats on this quarters earning -
  • We posed a first-quarter profit of $11.5 million or 18 cents a share, compared with $12.4 million a year earlier.
  • Revenues rose 21% to a $130.5 million, thereby beating the Wall Street expectations of a profit of 18 cents a share and revenue of $127.9 million.
  • In this quarter, we added 214,000 subscribers, ending up at 6.2 million
  • The Board has decided to pay a 20-cent quarterly dividend, to return capital to shareholders, reflecting the confidence in UNTD's strong cash flows.
  • UNTD rose 75 cents to $9.6 late Tuesday
  • And on midday Wednesday, shares rose 25% to $11.16
  • The company has now forecasted an operating income of $31.5 million to $32.5 million for the June quarter

So, overall, I feel we've done considerably well in the first place to have exceeded Wall Street expectations, though the quarter results have been a mix. Over the past year, our paying accounts have risen from 3.1 million to around 5 million, building our cash coffers upto $203 million. Our acquisitions of Classmates and Photosite should continue to keep us popular. Hoping for the best, in the quarters to come!



Blogger psasidhar said...

So, why isn't the share price increasing?!

2:51 AM  
Blogger Padmanaban Kumar (paddu) said...

It did rise. I touched around 11.7..What more do you expect ?

Once the dividends are paid out, its gonna start falling dude! So better sell some, atleast I did.

8:25 AM  

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