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RealNetworks sneaks a profit

Large lawyers bill doesn’t help

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RealNetworks made a profit of $800,000 on turnover of $76.6m for the three months ended 31 March 2005, just under half a cent per share.

The profit compared to a loss of $10.4m in the first quarter of 2004, revenues were up 27 per cent on last year.

Lawyers bills for Real’s marathon litigation against Microsoft accounted for $3.7m in the period.

The company claims 1.85m subscribers, up from 1.3m at the end of the first quarter of 2004. Real had 975, 000 music subscribers compared to 450, 000 at the end of the first three months of 2004.

Real’s consumer products and services division increased revenue 37 per cent to $64.2m. Music revenue grew 86 per cent to $22.2m and games revenue increased from $6.8m in the first quarter of 2004 to $12.2m.

The business products and services division brought in $12.4m in the quarter compared to $13.4m in the first three months of last year. Press release available here. ®

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