Pandora posts stronger financial results for the second quarter

Pandora posts stronger financial results for the second quarter

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Pandora Media Inc(NYSE:P) announced its sales for the second quarter that topped consensus forecast and issued an outlook that indicates that it is doing well even with new contest with Apple (AAPL).

The provider of Internet radio services announced that its revenue jump 30 percent to $285.6 million in the quarter, beating $283 million estimated by analysts surveyed by Bloomberg. Adjusted earnings for the quarter were 5 centsa share that topped consensus forecast of 2 cents a share.

The company is making efforts to add advertisers from terrestrial radio whereas it is facing pressure from competitors including AppleInc and Spotify Ltd.Pandora reported that listener hours jumped 5 percent in the quarter.

Pandora has forecasted sales in the range of $310 million to $315 million for the third quarter, higher than consensus estimate of $309.1 million.

Both Apple and Spotify deliver streaming-music services, which enable users to tailor their selection of songs and make music libraries. The two companies also provide Internet-based radio that combats with Pandora. They make use of the free products to entice customers to their paid services.

Pandora executives said on a conference call with analysts that the company hasn’t observed any significant impactfrom the launch of Apple Music, and also don’t think that it will hurt Pandora in the longer run. They also said that the company has grown more confident in its policy as ad-revenue momentumhas continued.

The company improved its revenue outlook for the full year. It is now anticipating revenue in the range of $1.175 billion to $1.185 billion for the full year.

Pandora is also engaged in discussions with record labels and other rights owners over amount it gives to license music. The United States Copyright Royalty Board will make a decision on few rates by December.

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I handle much of news coverage for tech stocks, and occasionally cover companies in different sectors. In the past, I've written for other financial sites and published independent investment research, primarily on tech companies. I have a B.A. in Economics from Columbia University. I'm based out of San Diego, but grew up in Southern New Jersey. I play basketball and tennis in my spare time, am a long-time (and long-suffering) fan of Philadelphia's sports teams, and alternate daily between using an iPad Air, a Galaxy Note 3, and one or two Windows PCs.

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