Earnings: Napster Grows Q1 Net Loss As Revenues Rise

Napster (Nasdaq: NAPS) saw its Q1 net loss double to $8.5 million from its net loss of $4.4 million last year, while revenue was up 9 percent to $29.1 million from $26.8 million. Looking ahead, Chris Gorog, chairman and CEO, said he expects the company to benefit from deals with wireless carriers, such as its deals with Motorola and AT&T, as mobile phone music capabilities become more widely accepted. The subscription music service also alluded to partnership with Circuit City as a deal that should bear fruit shortly. Napster’s total worldwide paid subscriber base was 830,000, including university subscribers, Napster Mobile subscribers, Napster Japan subscribers and the AOL Music Now subscribers who transitioned in March 2007. The number of paid subscribers grew 47 percent from the third quarter of 2007 and 37 percent year over year. Earnings release | Webcast

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