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Friday, Feb 23, 2024

Earnings, Revenue Drop at United Online

United Online Inc. reported second quarter earnings per share that beat analyst expectations while missing on revenue. The Woodland Hills company, which provides Internet access and runs ecommerce sites, reported net income of $15.7 million (17 cents a share) in the quarter ended June 30, compared to $16 million (18 cents) for the same quarter a year earlier. Revenue fell 4 percent to $222 million. Analysts on average expected income of 13 cents a share on revenue of $228 million, according to Thomson Financial Network. In April, United Online filed its initial registration statement for the spinoff of its flower-delivery unit FTD Cos. Inc. with the U.S. Securities and Exchange Commission. An initial public offering is expected in the third quarter. United Online Chief Executive Mark Goldston said the spinoff remains on track, with Oct. 1 as the company’s target date. FTD President Robert S. Apatoff will become the company’s chief executive after it goes public, while Goldston is expected to leave the parent company. Earlier this month, FTD received a $350 million five-year revolving credit line to refinance its senior secured debt as it prepares to go public. “We believe this significant annual interest savings will more than offset the public company costs and the incremental ongoing operating expenses that FTD anticipates it will incur annually as a result of the separation once the spin off is complete,” Goldston said in a prepared statement. Shares of United Online gained 15 cents, or 1.9 percent percent, to close at $8.11 on the Nasdaq.

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