Juno 2013 Annual Report Download - page 68

Table of Contents
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A goodwill and intangible asset impairment charge totaling $26.9 million was recorded in the quarter 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
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The decrease in Communications services revenues was primarily due to a 28% decrease in our average number of dial-up Internet access pay
accounts, partially offset by an increase in the number of mobile broadband service pay accounts, as well as a 3% decrease in ARPU. The decrease in
ARPU was attributable to a higher percentage of pay accounts on lower-priced or discounted subscription plans or services. The decrease in
Communications advertising revenues was primarily due to the decrease in active accounts. These decreases were partially offset by $3.0 million in
Communications products revenues related to the sale of mobile broadband service devices.
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The increase in Communications cost of revenues was due to $5.6 million of costs associated with the launch of our mobile broadband service in
the first quarter of 2012 and a $1.2 million inventory markdown in the quarter ended December 31, 2012 related to the mobile broadband service
devices. These increases were partially offset by a $2.5 million decrease in telecommunications, customer support and billing-related costs due to a
decrease in dial-up Internet access accounts, a $1.5 million decrease in costs associated with our DSL service, a $0.9 million decrease in costs associated
with our
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 
    
  
Content & Media impairment of goodwill, intangible assets and long-lived assets $ 26,910 $ — $ 26,910 N/A
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  
    
   
Services $ 78,089 $ 100,770 $ (22,681) (23)%
Products 3,011 — 3,011 N/A
Advertising 24,342 25,762 (1,420) (6)%
Total Communications Revenues $ 105,442 $ 126,532 $ (21,090) (17)%
ARPU $ 8.90 $ 9.14 $ (0.24) (3)%
Average number of dial-up Internet access pay accounts 418 583 (165) (28)%
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    
   
Communications cost of revenues $ 33,883 $ 33,442 $ 441 1%
Communications cost of revenues as a percentage of Communications revenues 32.1% 26.4%