J2 Global Sees Growth in Quarter

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An 8 percent increase in subscriber revenue enabled j2 Global Communications Inc. to report fourth-quarter earnings that were above analysts’ expectations.

After the market closed Thursday, the Los Angeles provider of outsourced messaging and communications services reported net earnings of $20.3 million (45 cents a share), compared with $16.9 million (34 cents) a year ago. Total revenue grew 7 percent to $61 million.

Analysts surveyed by Reuters Estimates on average expected net income of 42 cents a share on revenue of $61.6 million, the latter figure slightly higher than the company reported.

The company said full-year net income increased 17 percent to $72.6 million ($1.58). Total revenues were up 9 percent to $242 million. For fiscal 2009, j2 Global did not provide numbers, but said it expects to see modest revenue and earnings growth.

“We are pleased with our execution of the three primary goals we articulated going into the year,” said Chief Executive Hemi Zucker in a statement. “We improved our margins through continued focus on cost containment, grew our revenue while maintaining our headcount and deployed a portion of our cash more effectively through stock repurchases and acquisitions.”

Prior to the announcement, shares of j2 Global closed down 25 cents, or 1.4 percent to $17.25 on the Nasdaq.

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