United Online Sales Rise 19% but Profit Slips

Internet service provider United Online Inc. posted higher revenue but lower profit for its second quarter ended June 30.

Sales at the Westlake Village company, which operates NetZero, Juno and Classmates.com, were $131.5 million, up 19% from the same quarter a year earlier. Sales were driven by an increase in the number of United Online subscribers, which rose 138,000 to 6.3 million.

Net income fell 13% to $10.7 million, or 17 cents a share, from $12.3 million, or 19 cents, a year earlier.

United Online shares closed down 4 cents at $11.73, but rose to $12.25 in after-hours trading after the earnings release.