This company has just the thing for those special occasions when an e-mail just won't do. AG Interactive represents the electronic greetings and other digital content of its parent company, American Greetings. The subsidiary offers e-cards to nearly 4 million subscribers through a variety of electronic channels, including websites, Internet portals, instant messaging services, and mobile devices. AG Interactive's portfolio of e-card websites includes AmericanGreetings.com, BlueMountain.com, Egreetings.com. In addition, the company operates Kiwee.com (graphics, animations, emoticons, text generators), Cardstore.com (custom, physical greeting cards), and Webshots.com (photo sharing).
In addition to electronic greetings, AG Interactive offers personalized printable greeting cards and a range of graphics and digital services. It also provides consumers the ability to use personal photos to create calendars, photo albums, and photo books. Products can also incorporate characters that are licensed through the American Greetings Properties group (including popular brands such as Care Bears, Hollie Hobby, and Strawberry Shortcake).
AG Interactive's revenues fell slightly in 2011 compared to the prior year (to $78.4 million from $80.3 million in 2010), mostly due to lower e-commerce and subscription sales. At the start of 2011, AG Interactive had approximately 3.8 million online paid subscriptions versus 3.9 million at the beginning of 2010. While revenues declined, net income increased (to $14.1 million, up from $11.3 million the prior year), thanks to less overhead expenses and technology costs, a result of ongoing efficiency and cost reduction initiatives at the parent company.
American Greetings built up its digital holdings, formerly known as AmericanGreetings.com, through a variety of acquisitions. It acquired rivals Egreetings.com and BlueMountain.com in 2001, and later entered the online photo sharing space when it purchased the Webshots brand from CNET Networks in 2007. The following year it acquired PhotoWorks for about $26.5 million.
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