Napster Posts Q3 Revenue Gains

Subscribers up 50% from Q2.

Napster says revenues for its third fiscal quarter, which ended Dec. 31, 2004, increased 30% from the second quarter to $12.1 million. Year-over-year revenues from continuing operations more than tripled from $3.6 million.

For the third quarter, the company posted a net loss of $16.4 million, or 47 cents per share, vs. net loss of $16.9 million, or 49 cents per share, in the second quarter. The company reported a net loss of $17.9 million, or 64 cents per share, in last year’s third quarter.

Napster says it had approximately 270,000 paid subscribers as of Dec. 31, an increase of 50% from the second quarter. The figure includes 44,000 university subscribers. The company is projecting fourth-quarter revenues of $14 million and full-year revenues of $43 million.

Shares in Napster were up 4 cents to $7.90 in early trading today (Feb. 10). The stock closed down 9.1% yesterday at $7.86 ahead of the announcement, made after the close of the market.