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Friday, Aug 19, 2022

United Online Boosted By ClassMates

Shares in United Online Inc. gained nearly 10 percent Wednesday after the company reported late Tuesday that paid accounts at its Classmates.com Web site gained 22 percent.

United Online reported net income of $13 million (19 cents per share), unchanged from the same period a year earlier.

Revenues for the Woodland hills-based Internet company slipped 6 percent to $122 million.

However, the company said that its Classmates media segment had added 322,000 paid accounts during the quarter sending revenue for that segment up to $51.9 million.

Classmates has been the source of much concern for United Online. At the end of last year, the Federal Trade Commission ended its investigation into the popular reunion site’s automatic renewal policy and other subscription issues ultimately finding no wrongdoing.

United Online also scrapped plans to take the division public, saying market conditions would have made an initial public offering unprofitable. United Online said earlier this year that the scrapped IPO cost the company about $5 million.

The parent company of Internet service provider NetZero also said last week that it is acquiring online florist FTD Inc. for about $800 million.

Shares in United Online gained 9.6 percent to $11.46 in early trading Wednesday.


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