RealNetworks revealed record second quarter revenue last night.

It achieved revenue of $82.7 million, up 26 per cent year-on-year. This left the digital media firm with net income of $4.7 million (compared to a $4.6 million loss in the year-ago quarter). The company declared itself to have, "increased total paid subscribers to more than two million."

The majority of Real's income appears derived from the US, according to its financial statements.

"Music subscriber counts include Rhapsody, premium commercial-free radio services and Rhapsody radio registrations bundled with broadband Internet service providers," the company said.

The results included a one-off gain of approximately $7.6 million that relates to the acquisition of MusicNet.

This gain was offset by approximately $6.5 million of marketing expenses associated with the launch of Real's new Rhapsody music service.

Antitrust litigation cost Real $4.7 million.

Company chairman and CEO Rob Glaser said: "With increased profitability, record revenue and a base of more than two million paid subscribers, we continue to make solid progress."

Real's board has also authorized the repurchase of up to $75 million of outstanding common stock.

For the third quarter of 2005, Real expects net revenue to be between $80 million and $82 million.