Pandora expected to announce profit increment in the quarterly report, sources say

Pandora Media, the online satellite radio service is expected by analysts to move to profitability after a year-earlier IPO.

Wall Street forecasts a 2 cent per-share profit minus items, reversing the 3-cent loss in the year-earlier quarter, according to the consensus of analysts polled by Thomson Reuters.

The company will report its third-quarter performance sheets by close of business Wednesday. Its profits are expected to rise to $100.9 Million from the previous $67 Million.

Wedge Partners analyst Martin Pyykkonen said in a report that the company is still moving to prosperity and there is a lot of work to be done, especially in marketing and sales departments. The company still is working to expand its advertisement department to include more global services.

“The company needs to more rapidly monetize the advertising business,” Pyykkonen said.

William Blair analyst Ralph Schackart said in a report that he is seeing a strong trend of advertisement moving to online radio from local traditional stations. This might also be a threat to the local radios that have a limited listeners’ pool.

According to experts, Pandora is expected to report 54.0 Million listeners this quarter, which is a whopping 48 percent increase from a year-earlier.

“Terrestrial radio feels ‘threatened’ by Pandora’s current ‘national play,’ and eventual movement into local will be a game-changing event for incumbents, in this sales manager’s opinion,” wrote Schackart, who rated Pandora as outperform, or buy.

Some of the biggest competitors of the company in online radio services are Sirius XM Radio and Spotify. Pandora made IPO last year in June at $16 and was trading at $10 on Tuesday. Though it is lower than the face value, increasing subscription is expected to raise operational profitability.

New tablets and set-top boxes like Apple TV and Roku have boosted Pandora’s listenership in the last one year.

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Posted by Usman Khalid on Aug 30 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.