Napster’s revenues grow 30% from Q2 to Q3
Third-quarter net revenue at Napster Inc., the digital music provider, increased 30% to $12.1 million from $9.3 million in the immediately preceding quarter, the company reports. Napster experienced a net loss of $16.4 million in Q3 compared to a net loss of $16.9 million in Q2.
The revenue and loss numbers represent continuing operations—basically the Napster music business—and not the software division, which Napster sold Dec. 17.
For the fourth quarter of fiscal 2005, Napster expects revenues to grow to approximately $14 million. The company is also revising upwards its full-year revenue guidance for Napster to $43 million from a previous range of $35 million to $40 million.
After a Jan. 24 private placement of stock with net proceeds of approximately $49 million, Napster`s current net cash and investment balance is approximately $188 million.
Napster has 270, 000 paid subscribers, including 44,000 university subscribers. The paid subscriber base increased by 50% in the quarter over the prior quarter. It now has partnerships with 13 universities.
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