United Online Grows Billable Subscriber Base

Internet service provider (ISP) United Online reported progress on its efforts to move users from its free Internet program to its paid services.

Reporting its quarterly earnings, the parent company of NetZero and Juno said paid subscribers jumped 7 percent in the quarter, rising to 1.7 million at the end of June. This still represents just 35 percent of United’s 4.8 million overall customers.

The Westlake Village, Calif., ISP took in $54.4 million in revenues for the quarter, up 7 percent from the previous quarter. United recorded a net loss of $2.7 million, down substantially from the March quarter’s $7.3 million shortfall.

“United Online’s record performance this quarter demonstrates our ability to grow our pay subscriber base while significantly improving our financial results,” United Chairman, CEO and President Mark Goldston said in a statement.

With the online advertising market’s prolonged slump showing few signs of abating, expanding its paid subscriber base has been or paramount concern for United. Revenues from its billable services represented 88 percent of the company’s revenue.

United expects its billable subscriber growth will slow next quarter to between 70,000 and 90,000, down from this past quarter’s 109,000 increase. For the calendar year, United anticipates its paid subscriber base will increase 25 to 28 percent, an increase over earlier projections.

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