US online radio station Pandora has revealed its advertising is now generating more revenue per 1,000 hours of airtime than traditional radio is doing right now.
Pandora posted revenues of $67m for the second quarter; more than double 2010’s figures. This comes from its desktop version, and its mobile service has more room for growth.
Analysts have pointed out that its ratio of revenues per hour are higher than that of traditional radio stations.
“We had next-to-no audio advertising-related revenue two and a half years ago, and it’s now grown to be very substantial,” said Chief Executive Joe Kennedy.
However, the company reported a quarterly loss in its first earnings report since going public in June.
Pandora reported a loss of $1.8 million, or 4 cents a share for its second quarter ended July 31, compared to- net income of $1.6 million, or a loss of 4 cents on a per-share basis, in the same period last year.
On an adjusted basis, Pandora reported earnings of 2 cents a share for the second quarter. Total revenue more than doubled to $67 million, Pandora said, while “total listener hours” on its service also more than doubled, to 1.8 billion.
For its current, third quarter, Pandora said it expects revenue between $69.5 million and $72.5 million, and between an adjusted loss of 2 cents a share and break-even.
