RealNetworks comes out of the dark

Earnings Brief

HOLLYWOOD — Online media company RealNetworks swung into the black last quarter thanks to strong growth in its digital music and vidgame offerings.

Revenue from subscription music service Rhapsody and other music offerings grew 86% to $22.2 million, while vidgame revenue was up 80% from a year earlier to $12.2 million. Real currently has more than 1 million subscribers to its music services.

Business offerings remained a smaller contributor, as B2B revenue declined 7% to $12.4 million.

In total, RealNetworks made a profit of $800,000 on revenue of $76.6 million last quarter. In the same quarter a year ago, Real lost $10.4 million on $60.4 million in revenue.

Company spent $3.7 million last quarter in legal expenses as part of its ongoing antitrust suit against Microsoft.

Shares in RealNetworks closed up 3% Wednesday at $6.37 before earnings were announced.

— Ben Fritz

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