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The Company is a leading provider of consumer Internet and media services.
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NetscribeECommer (46.04) Submitted: 1/12/07 7:54 AM : Start Price: $12.34 UNTD Score: -11.65
United Online offers a variety of consumer internet services, which are subscription based as well as free of charge under the brand name NetZero, Juno and Classmates Online. It operates in two segments, Communications and Content and Media. Communications segment includes dial-up internet access, email, internet security and Voice over Internet Protocol. Content and Media includes social-networking, personal web-hosting, online marketing and online digital photo-sharing.Competitive pressures from broadband services have resulted in significant declines in subscribers to dial-up access services of the company. The number of broadband users is expected to reach 67 million by 2009 as compared to 47 million in 2005. However, the number of dial up access service users is expected to decline to 17 million from 27 million over the same period.Until recently, United Online did not have presence in providing broadband services. By tying up with Verizon to provide digital subscriber lines (DSL), a form of broadband internet connection, under NetZero DSL and Juno DSL, the company has extended the life of its existing NetZero and Juno dial up user base. In its social networking community called Classmates, the company is launching a new feature called Google Maps, which will enable the users to determine their friends or colleagues location. This initiative would convert free members into paid members.United Online is also exploring the opportunities with various parties to enter the search area business. With strong balance sheet and appetite for some acquisition into content and media segment of its business, United Outline is expected to shine among its peers.
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bilgewtr (64.33) Submitted: 1/19/07 1:25 PM
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I've heard some talk about UNTD monetizing their Classmates in various ways, but I'm sceptical. Why would I pay to see a map of where my friend lives when I can find him for free on Google, online phone books, his MySpace page, his Facebook, his blog, his Flickr, etc? Maybe stalkers would pay?
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NetscribeECommer (46.04) Submitted: 4/16/07 6:08 AM
Very recently, United Online announced that it is providing 2Wire premium residential gateways to all subscribers of United Online's NetZero(R) DSL broadband service. 2Wire premium broadband access equipment are made by 2Wire, Inc., a provider of broadband service delivery platforms. With over nine million 2Wire gateways currently installed in homes around the world, 2Wire HomePortal residential gateways have set the standard for excellence in broadband access equipment. 2Wire gateways combine a high- performance DSL modem, a high-speed router, professional-grade firewall, and home networking capabilities.United Online reported flat revenues for the fourth quarter of 2006. This is because revenues from Communications segment declined by 16% and revenues from Content and Media increased by 66%. Net income reduced drastically on account of provision made for non-cash related impairment charges.. Net paying subscribers declined by 58 thousand to 4.85 million paid subscribers at the end of fourth quarter 2006. Also, it has expanded its NetZero DSL service into major metropolitan areas serviced by Covad Communications Group Inc. With the addition of Covad's broadband network, NetZero DSL is now available to customers in 49 major metropolitan areas. With a slight down turn in revenues, the company expects operating income to grow by 6%-12% for 2007. The above factors are likely to provide upside potential to the stock of United Online.
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