Paid-subscriber numbers may have hit the milestone 1 million mark, but
revenue slowed for RealNetworks Inc.
The streaming-media-technology provider saw a net loss of $2.8 million (2
cents per share) for the first quarter, compared with a profit of a little more
than $1 million posted for the same quarter in 2002.
Revenue came in at $46.3 million, a slight drop from the $47.3 million
collected in the prior first quarter.
But RNI downplayed the flattening financials by trumpeting its "RealOne
SuperPass" paid-content subscription service -- the first such service to hit
the 1 million-subscriber mark. Subscription revenue increased 4 percent in the
quarter as a result, totaling $23.6 million.
RNI is projecting that the second quarter will see a modest revenue growth
based on its subscription and system-infrastructure businesses, with net loss
per share projected at between 1 cent and 3 cents.
The company will also see some financial impact from its acquisition of
online-audio service Listen.com (www.listen.com). Once that deal closes late in
the second quarter or in the third quarter, the company estimated that it will
add an operating loss of about $1 million to $2 million per quarter in
2003.
