BlackBerry maker sees strong profit growth

RIM expects to add between 3.7 million and 3.9 million new subscribers in the first quarter of 2010

Shares in Blackberry maker Research in Motion (RIM) jumped 20 per cent in after-hours trading yesterday after the firm posted strong profits for the fourth quarter of 2009, beating analysts' expectations.

RIM made a $518.3m (£350m) profit in the fourth quarter, a 26 per cent increase from $412.5m (£279m) in the same period last year.

For the fiscal year 2009, profit was $1.89bn (£1.27bn), up 46.3 per cent over 2008.

Revenue for the fourth quarter of 2009 was $3.46bn (£2.3bn), up 84 per cent from $1.88bn (£1.27bn) a year ago.

"We are very pleased to report another record quarter with standout subscriber growth that speaks volumes about the early success and momentum of our new BlackBerry products,” said Jim Balsillie, co-chief executive at RIM.

“Looking ahead into fiscal 2010, we see exceptional opportunities for RIM and its partners to leverage the investments and success of the past year to continue growing market share and profitability."

RIM expects to add between 3.7 million and 3.9 million new subscribers in the first quarter of 2010.

The revenue breakdown for the quarter was 83 per cent for devices, 12 per cent for service, two per cent for software and three per cent for other revenue.