United Online (NSDQ: UNTD) managed to offset falls in advertising revenue at Classmates.com by getting more people to sign up for paid accounts on the social networking site. United said that ad revenue fell 2 percent at Classmates.com to $20.3 million during its first fiscal quarter, although services revenue jumped 22 percent to $38.2 million. There are now 4.6 million paid accounts on the site, up from 3.5 million a year ago.
Overall, United Online, which also runs floral site FTD.com, said its net income increased to $17.1 million (35 cents per share), up 31 percent, from $13 million (31 cents per share) a year ago. Revenue doubled to $263.65 million, from $122 million during the same period a year ago. On average, analysts had expected earnings per share of 30 cents on revenue of $261 million.
By Joseph Tartakoff