Juno 2013 Annual Report Download - page 59

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Table of Contents
Content & Media segment, as well as segment profitability. At December 31, 2013, accrued restructuring and other exit costs totaled $0.2 million,
which will be paid over the next 12 months.

Goodwill impairment charges totaling $52.9 million were recorded in the year ended December, 31, 2013 due to a material reduction in the fair
value of the Classmates reporting unit. A goodwill and intangible asset impairment charge totaling $26.9 million was recorded in the year ended
December, 31, 2012 due to a material reduction in the fair value of the MyPoints reporting unit. See "Critical Accounting Policies, Estimates and
Assumptions—Impairment of Goodwill" for additional information.
Communications Segment Results

The decrease in Communications services revenues was primarily due to a 27% decrease in our average number of dial-up Internet access pay
accounts, partially offset by a 5% increase in ARPU and growth in mobile broadband pay accounts. The increase in ARPU was attributable to a higher
percentage of mobile broadband pay accounts, which have higher ARPUs. The decrease in Communications services revenues was partially offset by a
$4.4 million increase in Communications advertising revenues due to higher advertising rates driven by optimization of advertising inventory and
stronger market demand and a $0.7 million increase in Communications products revenues related to the sale of mobile broadband devices and the
related shipping and handling fees.

57

 
 

Content & Media impairment of goodwill, intangible assets and long-lived
assets $ 52,899 $ 26,910 $ 25,989 97%

 
 

Services $ 68,393 $ 78,089 $ (9,696) (12)%
Products 3,743 3,011 732 24%
Advertising 28,722 24,342 4,380 18%
Total Communications Revenues $ 100,858 $ 105,442 $ (4,584) (4)%
ARPU $ 9.34 $ 8.90 $ 0.44 5%
Average number of dial-up Internet access pay accounts 307 418 (111) (27)%

 
 

Communications cost of revenues $ 33,865 $ 33,883 $ (18) —%
Communications cost of revenues as a percentage of Communications revenues 33.6% 32.1%