Since completing its merger with Napster, music startup MelodyVR has adopted that company’s brand. However, this morning it published financial results for its last full year before the deal, to 28 December 2020.
Bright spots included nearly doubling its users to 325,000, and selling around 40,000 tickets for a streamed Liam Gallagher concert. Less bright spots include, well, the financial results.
MelodyVR’s revenues did grow sharply, from £195k in 2019 to £988k in 2020 (around $1.4m). However, its cost of sales also grew from £1.8m to £5.6m, while administrative expenses grew from £14.2m to £21.5m.
In other words, those costs and expenses combined were more than 27 times the company’s revenues, leading to an operating loss of £26m. However, the newly-merged business remains optimistic.
“We expect to launch an updated version of Napster towards the end of Q4 2021 that combines the numerous content types that the legacy Napster and MelodyVR platforms represented into a single offering,” explained chairman Simon Cole in the results.
“We have a clear plan for monetisation of the new platform. Subscriber growth will be at our core – initially focussing on relationships with both existing and new telco partners as 5G mobile networks roll out across the globe and our partners look to showcase their own technology.”