RealNetworks reports record Q4, full-year revenues

Digital media services and software provider RealNetworks has revealed its fourth quarter and 2005 full-year fiscal results, showing record profits and a doubling of revenue from its casual games division.

Revenue for the quarter increased by 15 per cent, reaching USD 83.6 million (EURO 70.1 million) compared to USD 72.5 million (EURO 60.8 million) in the same period last year.

Various divisions showed a strong performance during the quarter including RealNetworks' casual games division, which generated USD 15.7 million (EURO 13.1 million) and marked the second biggest revenue increase (52 per cent) compared to the same period a year ago. The company's media properties division generated the highest increase, climbing 55 per cent to USD 9 million (EURO 7.5 million) for the quarter.

Net income for the quarter was posted at USD 295.6 million (EURO 248.2 million), compared to a loss of USD 1 million (EURO 839,000) in 2004. The profits were greatly assisted by a series of agreements with Microsoft to end the antitrust litigation. Under the terms of the agreement, RealNetworks will receive payments of up to USD 761 million (EURO 639 million) over a period of 18 months.

RealNetworks has received payments of USD 478 million (EURO 401 million) to date, and the two companies have established a digital music and games collaboration through which Microsoft can gain credits against further payments of USD 283 million (EURO 199.7 million), delivering music purchasers to Real through its promotional efforts.

RealNetworks primarily distributes its casual games through the RealArcade network, developing and distributing its own products in addition to distributing third party titles from companies including PopCap Games. The company recently formalised its plans to expand its operations in European markets, announcing the acquisition of casual games developer Zylom for USD 21 million.