United Online, a discount Internet service provider, said on Thursday it posted a fiscal second-quarter profit as revenue grew amid an increase in its subscriber base. The company also raised its financial targets for 2003 and said its third-quarter earnings before items would be higher than Wall Street expected.
United Online, formed in 2001 upon the merger of free Internet service providers Juno and NetZero, reported a profit based on generally accepted accounting principles (GAAP) of $4.7 million, or 11 cents a share, reversing a year-ago loss of $15.7 million, or 41 cents a share. Revenue grew 37 percent to $65.8 million as its paid subscriber base grew by 328,000, including acquisitions, for a total of 2.18 million. United Online's subscriber increase comes at a time when its major rivals MSN, America Online and EarthLink are facing a slowdown in their dial-up subscriber growth.