RealNetworks says its second quarter music revenue grew 61% to $24.1 million, as subscribers to its premium music offerings more than doubled to 1.15 million from 550,000 a year ago.
Music drove the company’s overall results for the quarter. As a whole, Real posted positive net income of $4.7 million, reversing a $4.6 million loss from last year; sales grew 26% to $82.7 million.
Real’s results were aided in part by a gain of approximately $7.6 million associated with the divestiture of its investment in MusicNet.
However, much of that upside was offset by the $6.5 million it spent marketing the launch of its updated Rhapsody music service during the quarter.
Among other segments, games revenue grew 63% to $13.6 million, up from $8.4 million a year ago. Advertising related revenue increased 22% to $8.2 million.
Combining premium entertainment and software services Real claims more than 2 million subscribers.
As of June 30, Real had approximately $363.2 million in cash and equivalents on hand and the company says it will buy back up to $75 million in common stock. Shares in Real closed up 6 cents at $5.05 ahead of the announcement.
