Investors Give A Thumbs Up To Pandora Media Inc. (NYSE:P)
On November 5, 2013 the leading internet radio service provider, Pandora Media Inc. (NYSE:P) announced new metrics for the month of October 2013 with significant gains in listener hours as well as in market share. The company releases such metrics every month to update the most current information regarding its user base and usage across platforms.
Pandora reported listener hours during the month of October at 1.47 billion suggesting approximately 18% increase from 1.25 billion during the same month last year. The important thing to note is, hours of listening grew close to 9% (8.88%) during the month of October from 1.35 billion during September, when Apple Inc. (NASDAQ:AAPL) unveiled its iTunes Radio, a free, ad-supported service available to all iTunes users. Share of total U.S. radio listeners for Pandora also grew to 8.06% during October compared to 6.61% during the same month, last year and 7.77% during the preceding month. Active listener base grew 20% from 59.2 million during October 2012 to 70.9 million during October 2013. However it fell moderately from preceding month where 72.7 million active listeners were reported.
Following the results the stock rose 8.61% and closed at $27.88 on Tuesday. The stock has almost tripled or surged over 200% year to date.
Pandora operates in the U.S., Australia and New Zealand and plans international expansion. The company may use some of the total proceeds worth $400 million raised in September for the said expansion. Expansion in foreign markets usually requires upfront payments to breakthrough direct licenses with record companies.
Besides the new entrant iTunes Radio, Pandora also dominates rivals including iHeartRadio that operates in the U.S. and recently started adding stations from Canada and the United Arab Emirates. iHeartRadio also launched its services in Australia and New Zealand in July 2013. Though the competition from Apple’s iTunes Radio couldn’t be ignored in time to come as Apple hasn’t done much to push iTunes Radio on its relatively new iOS 7 platform.