Podcasting company Audible has reported widening losses in Q3, despite turning a profit at its UK subsidiary and seeing growth in subscribers.
The firm, which sells audio files via websites including Apple’s iTunes, earned net revenues of $20m during the three months, 19% more than the same period last year.
It acquired 71,100 more customers, taking its subscriber base to 345,200, an increase of 54% year on year. However, GAAP loss from operations totaled $3.2 million in Q306, compared to $2.7m in Q206 and $0.8m in Q305.
Donald R. Katz, the firm’s chairman and CEO, said Audible would be introducing new “multiple offer designs and merchandising techniques” in a bid to encourage more customers to sign up to its membership plans.
"Despite another quarter of positive cash flow, lower churn, full quarter profitability from the combined Audible UK and iTunes UK revenue only sixteen months after launch - and the signing of a pivotal new technology integration and content distribution agreement with Apple that extends through September of 2010 - we did not achieve the top line growth we expected during the third quarter of 2006."
He added that the company would continue to be in transition during Q4, but expected “much better financial results” next year.