Fewer-than-expected people tune in to Pandora in third quarter

Reuters News
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Posted: Oct 23, 2014 4:47 PM

(Reuters) - Pandora Media Inc <P.N> reported a lower-than-expected increase in the number of people tuning in to its Internet radio in the third quarter, sending its shares down 4 percent in extended trading.

The company's active listeners rose 5.2 percent to 76.5 million in the quarter ended Sept. 30, but fell short of the average analyst estimate of 76.7 million, according to StreetAccount.

Total listener hours rose to 4.99 billion from 3.99 billion, but again fell short of the average analyst estimate of 5.02 billion, according to StreetAccount.

However, Pandora's profit and revenue in the quarter beat market expectations, driven by accelerated advertising revenue growth on increased mobile revenue.

The company posted an adjusted profit of 9 cents per share, on revenue of $239.6 million.

Analysts on average were expecting a profit of 8 cents per share on revenue of $238.49 million according Thomson Reuters I/B/E/S.

(Reporting by Amrutha Penumudi in Bangalore; Editing by Savio D'Souza)