So much for naysayers (well, still too early to say anything anyway): Napster, the online music service, has raised its quarterly outlook, citing strong subscriber growth, sending its shares up 16 percent.
For Q1 of this year, Napster will post more than $26 million in revenue, a “substantially narrower” net loss than earlier forecast, and a total subscriber base of more than 600,000 users worldwide, the company said. It expects to report a cash and short-term investments balance in excess of $103 million.
Piper Jaffray analyst Gene Munster, in a research note, said the “positive preannouncement shows that Napster (subscriber) adds are tracking ahead of plan and provide us with more confidence that the company will remain healthy as it works to launch the new Napster.com.”
More info in release here.
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