Online media company RealNetworks saw fast growth in its music and games offerings last quarter, driving its swing into profit.
Company reported net income of $4.7 million, though that included a $7.6 million gain from the sale of its share in online musicstore MusicNet and litigation costs of $4.7 million in its anti-trust lawsuit against Microsoft. Excluding both figures, company made $1.7 million, still up markedly from a $4.6 million loss in the same quarter last year.
Revenue was $82.7 million, or $75.1 million excluding the MusicNet sale, up 15%.
Driven primarily by its subscription music service, Rhapsody, company saw music revenue rise 61% to $24.1 million. Online game subscriptions also grew significantly, with revenue up 63% to $13.6 million.
Growth in the online advertising biz helped boost its media revenue 22% to $8.2 million, while the company’s business-to-business division was up only slightly at $12.1 million.
RealNetworks now has more than 1.15 million subscribers to its music products, primarily Rhapsody, and more than 2 million subs overall for all its digital media offerings.
After closing up just 1% at $5.05 before earnings were announced, Real stock was up 12% in after-hours trading.