Tax Benefit Boosts Net Income at United Online

United Online Inc., a low-cost Internet service provider, on Wednesday said its quarterly earnings for quarter rose, boosted by a tax benefit.

The Woodland Hills company said its fourth-quarter net income rose to $80.2 million, or $1.26 a share, from $24.4 million, or 35 cents, a year earlier.

Excluding a $68.6-million tax benefit, United Online posted earnings of $11.6 million, or 18 cents a share, in the most recent quarter.

On an adjusted earnings basis, excluding the tax benefit and after-tax effect of amortization of intangible assets and stock-based compensation and other items, the company earned 26 cents a share.

Fourth-quarter 2003 net income was boosted by a $12.3-million, or 18-cent-a-share, gain from a tax benefit.

Revenue rose 23% to $119.6 million.

The owner of NetZero and Juno Internet services said it added 1.59 million pay accounts and 1.64 million subscriptions. It ended the quarter with 15.2 million active accounts, which include subscribers to the recently acquired Classmates Online Inc.

Looking ahead, the company said it expected revenue for the current quarter to reach $126 million to $129 million and adjusted operating income before depreciation and amortization to be $30 million to $31 million.

United Online expects adjusted operating income before items for the year to be $124 million to $131 million.

It said total pay accounts were expected to rise to 4.85 million to 4.95 million by March 31.

The news was released after markets closed. Shares of United Online rose 34 cents to $10.09 in after-hours trading, after closing down 55 cents to $9.75 on Nasdaq.