It’s been a tough 2015 for dance brand SFX Entertainment, and its latest quarterly financial results may spark more questions about the company’s future. SFX recorded revenues of $111.2m, down from $114.7m this time last year. But back then, SFX recorded a net profit of $5.1m, whereas in the last quarter, it reported a net loss of $54.5m.
Live events remain the bread and butter of SFX’s business, accounting for $115.5m of its revenues last quarter compared to the $18.3m made by its platform business – including downloads store (and now streaming service) Beatport. The latter was down from $25.4m in the third quarter of 2014.
SFX remains optimistic, as you have to if you’re a public company. “We believe that in the near and medium term, revenue from our online platform properties, including Beatport, will experience growth as we introduce new content, products and offerings,” claimed its financial filing.
However, SFX also admitted that “a reduction in the volume of digital music download sales as we launched our new free streaming service in the United States” was to blame for the year-in-year decline in platform revenues.