Personal radio service Pandora has announced its financial results for Q2 2012, with revenues up 51% year-on-year to $101.3m.
However, that wasn’t enough to steer the company into the black, as it posted a net loss for the quarter of $5.4m, compared to $3.7m a year agos. Of the revenues, $89.4m came from ads and $11.9m from subscriptions, up 53% and 36% respectively.
Pandora ended the quarter with 54.9m active listeners, up 48% year-on-year, while listening hours grew 80% to 3.3bn for the quarter. But the big focus is on the company’s mobile growth, and how it can make more money from it.
“More than 75% of total listening hours took place on mobile and other connected devices,” said CEO Joe Kennedy in the company’s analyst call.
Kennedy went on to say that Pandora’s mobile revenues for Q2 were up 86% year-on-year to $59.2m – “quite close to our growth rate in mobile hours which was 96% meaning that we have narrowed the mobile monetisation gap considerably”.
Although the bigger picture is that mobile now accounts for 75% of listening hours and only 58% of revenues. Meanwhile, content acquisition costs (royalties) in Q2 were $60.5m – 60% of Pandora’s overall revenues.