The loss-making streaming service is rumoured to be looking for a buyer within the next 30 days, as its Ticketfly ticket agency posts another quarter of strong growth
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The Pandora group has lost close to a quarter of a billion dollars this year, although ticketing revenues increased 25% year-on-year
By Jon Chapple on 26 Oct 2016
Pandora’s much-hyped US$450 million acquisition of Ticketfly in October 2015 is showing a growing return according to the company’s third-quarter (Q3) 2016 financial results, which show a 25% year-on-year hike in revenues from the ticketing service.
Ticketfly signed up a number of new partners in Q3, including promoter/venue operator Jam Productions, three festivals, ice-hockey team Shreveport Mudbugs and 12 US venues. The company’s turnover stood at $22.085m in the three months ending 30 September, while it reported $22.771m in Q2 and $22.265m in Q1.
No profit figures are available for Ticketfly specifically, but Pandora as a whole – which comprises Pandora proper (an internet radio and recently launched on-demand streaming service), Ticketfly, analytics business Next Big Sound and former rival radio service Rdio, which went bankrupt in November – lost $55.2m in Q3, bringing its to-date 2016 losses to an eye-watering $236.5m.
“”Pandora’s transformation continues with the launch of compelling new products and partnerships that open up significant revenue streams”
Overall revenue, however, increased to $351.9m – up 13% year on year.
Pandora’s founder and CEO, Tim Westergren (pictured), is confident in the company’s eventual “transformation” into a profitable entity through bringing music streaming/radio and live events under one roof, as evidenced by its recent integration of Ticketfly sales and concert recommendations into the Pandora radio platform.
“Pandora’s transformation continues with the launch of compelling new products and partnerships that open up significant revenue streams,” he told investors yesterday. “Only Pandora is uniquely positioned to create deeply personalised and easy-to-use listening experiences that delight and engage listeners. A great product that’s effectively monetised is the cornerstone of success in digital music streaming.”
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