RealNetworks hits million subscribers but posts a loss

By Matt Whipp

Posted on 30 Apr 2003 at 17:44

RealNetworks has posted its results for the first quarter, to the tuned of a $2.8m loss.

Revenues of $46.9m comprised $31.5m from consumer revenues (up $1m sequentially) and $14m from systems revenues (up $0.2m sequentially).

Subscription revenues were up 4 per cent to the corresponding quarter of 2002, to $23.6m (this is included in the consumer revenues). Gross margin remained stable at 71 per cent. Subscription number, however, broke through the one million mark, making RealNetworks the first company to have a million paid Internet subscribers, it claims.

CEO Rob Glaser, said: 'In the first quarter of 2003 we continued to make progress towards our key goals. We stabilised our technology business while continuing to grow our consumer subscription business. We powered the first shipments of high volume consumer devices from Palm and Nokia that use the RealOne player... and most significantly we passed the major milestone of reaching one million subscribers.'

RealNetworks is looking to boost subscriber figures still further with the imminent acquisition of Listen.com. It expects to complete the transition either later in the second quarter or early in the third.