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J2 Global Backs FY17 Profit View, Cuts Revenue Outlook On Divestitures

j2 Global, Inc. (JCOM), a provider of Internet services and digital media, announced Thursday that it continues to expect fiscal 2017 adjusted earnings per share of between $5.60 and $6.00. j2 now estimates that it will achieve revenues between $1.107 billion and $1.147 billion, lower than previously expected $1.130 billion to $1.170 billion.

In premarket activity, shares were losing around 3 percent to $75.38.

The company sold Cambridge BioMarketing LLC, a subsidiary of Everyday Health, Inc. In addition, j2 announced that it has sold Web24, its Australian hosting business, and Tea Leaves Health, LLC, a subsidiary of Everyday Health, Inc.

The three divestitures are expected to reduce the Company's revenue by approximately $23 million in the second half of the year.

Further, the company said it has completed two acquisitions in the third quarter of 2017, spanning two business units and two countries. The company acquired backupsonline in The Netherlands and StreamSend in the USA. Terms of the individual acquisitions were not disclosed, and the financial impact to j2 is not expected to be material with respect to those acquisitions.

by RTTNews Staff Writer

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