Akamai's results beat estimates as internet traffic surges

Wed Feb 5, 2014 5:00pm EST

Related Topics

(Reuters) - Akamai Technologies Inc reported better-than-expected quarterly results as its media and entertainment clients used more of its content delivery services to manage traffic over the Internet.

Akamai's shares rose 5 percent in trading after the bell.

The company has benefited from a surge in internet traffic as more people take to social media and its 147,468 servers carry content for clients including Facebook Inc.

"This is one of those really nice quarters where everything went well ...," Chief Executive Tom Leighton told Reuters.

Media and entertainment business accounted for about 42 percent of the company's revenue in 2012 and clients include Sony BMG, News Corp, Nintendo Co and NBC.

Akamai's revenue rose 15 percent to $436 million in the fourth quarter.

Net income rose to $80.3 million, or 44 cents per share, from $68.3 million, or 38 cents per share, a year earlier.

Excluding one-time items, the company earned 55 cents per share.

Analysts on average had expected earnings of 52 cents per share on revenue of $422.4 million, according to Thomson Reuters I/B/E/S.

Akamai shares closed at $47.42 on the Nasdaq on Wednesday.

(Reporting by Chandni Doulatramani in Bangalore; Editing by Don Sebastian and Sriraj Kalluvila)

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article