United Online (NSDQ: UNTD), parent of failed IPO candidate Classmates.com, reported Q4 revenue of $125.4 million, down 4 percent year-on-year from $130.8 million. Net income jumped significantly, to $14.5 million from $4.5 million, although the prior year’s quarter included a big one-time charge. Not surprisingly, the online access side of the business continues its long, not so slow decline, with revenue falling 19 percent to $72.1 million, from $88.8 million. This was balanced out by 27 percent growth in the Classmates.com business to $53.3 million.
Although Classmates failed to go public, the company has restructured its reporting to make Classmates its own reporting unit — the unit also includes UNTD’s online loyalty marketing business. Web hosting and photo sharing, which had been part of the old Content & Media business, has been moved to the old-line communications side. Although the perception is that the subscription-based Classmates business is on the decline in the face of free social networking services (one analyst pegged its long-term value at $0), the company says it netted 216,000 pay accounts for the unit in the quarter, bringing the total to 3.2 million.