Napster parent company, Roxio, reported widening losses in its second quarter results, announced yesterday.
The results did show some positive news for the company, for example, 73 per cent of its revenues came from subscriber revenue; and revenues grew 18 per cent.
Napster revenues grew 18 per cent to $9.3 million from $7.9 million in the previous quarter, the software division accrued revenues of $18.1 million. Total net revenues reached $27.4 million, compared to $22.8 million in the year-ago quarter.
The company's total net loss for the quarter was $15.3 million, or $0.44 per share. The company had anticipated a $0.55 loss per share. Losses were steady in contrast to the year-ago quarter, when the company lost $11.9 million, or $0.43 per share.
Roxio ended the second quarter with approximately $61.9 million in cash, restricted cash and short-term investments.
Roxio CEO, Chris Gorog, said: "We are pleased to deliver results that exceeded our sales and earnings guidance while maintaining a tight control on costs. Napster revenues continued to gain momentum, growing 18 per cent from the previous quarter, while online music revenue excluding hardware sales increased 33 per cent sequentially.
"Our premium subscriber base grew substantially during the quarter, with subscriber revenue growing to 73 per cent of total music revenue, which continues to validate our vision that subscriptions are the future of digital music. We are also very pleased to have debuted the first portable online music subscription service on October 12 as 'Napster To Go' became available with the Windows Media Player 10 plug-in."