RealNetworks’ 2007 sales of $567.6 million top 2006 by 44%

Online entertainment services company RealNetworks Inc. posted record revenue for both the fourth quarter and all of 2007. Fourth quarter revenue of $156.9 million was up 25% compared with $125.6 million in the prior year period. Full-year revenue was about $567.6 million, a 44% increase compared with $395.3 million for 2006.

RealNetworks broke out its 2007 revenue as follows: a 26% increase in games revenue to $108.5 million; a 21% increase in music revenue to $149.1 million; a 9% decline in media software and services revenue, to $103.3 million; and a 185% increase in technology products and applications revenue to $206.6 million.

Technology products and applications include mobile music, video and ringtone sales to wireless networks, and the company attributed the large increase in the category mainly to the acquisition of WiderThan during Q4 of 2006. WiderThan provides ringtones, music-on-demand and other mobile entertainment services to more than 50 wireless carriers in more than 25 countries.

Full-year net income was $48.3 million, compared with $145.2 million in 2006.

The company attributed revenue growth in the fourth quarter to a 29% increase in games revenue to $30.9 million; a 21% increase in music revenue to $40.5 million; and a 59% increase in technology products and applications revenue to $59.9 million.

The company also reported a 16% decline in media software and services revenue to $25.6 million. RealNetworks is No. 94 in the Internet Retailer Top 500 Guide.

Net income for the quarter was $2.7 million, compared with $39.3 million in the fourth quarter of 2006. Results for the fourth quarter of 2006 included payments related to RealNetworks’ antitrust settlement and commercial agreements with Microsoft. The final payment was received under those agreements during the first quarter of 2007, the company says.