Net income increased slightly for Internet and media services provider United Online Inc. in the third quarter. The Woodland Hills-based firm reported a net income of $14 million, or $0.20 per diluted share, on revenues of $126.9 million for the quarter ending Sept. 30. That is a 4 percent increase of net income of $13.4 million, or $0.20 per diluted share, on revenue of $129.6 million for the same period in 2006. The content and media segment had 3.1 million accounts for the quarter. The segment had an increase of 237,000 in social networking pay accounts, partially offset by a loss of 18,000 pay accounts following the company’s exit from the photo sharing business. The communications segment accounted for 2.2 million accounts for the quarter. United Online expects to take a $3.5 million hit in the fourth quarter in connection with eliminating 69 positions in the communications segment to better manage the segment for profitability. Shares of United Online closed at $15.24 on the Nasdaq.
United Online Gains in Profits