Published November 05, 2013
Pandora Media (P) said Tuesday its music streaming service attracted more listeners in October, despite concerns that total users and listener hours would suffer amid the launch of Apple’s (AAPL) iTunes Radio.
Shares jumped 3.2% to $26.50 in recent trading. The stock has been on fire this year, soaring 179% on the year through Monday’s close.
Listener hours jumped 18% year-over-year to 1.47 billion, and Pandora’s share of the U.S. Internet radio market widened to 8.06% from 6.61%.
Active listeners totaled 70.9 million by the end of last month, up 20% over October 2012.
The strong October performance came in the wake of a September launch for Apple’s new Internet radio service. Pandora subsequently removed a cap of 40 hours a week of free radio.
Listener growth has strained the company’s earnings, as more listeners boost the amount Pandora must pay in music royalties. In August, Pandora reported a wider second-quarter loss, but revenue climbed 58%.
In September, the Internet radio provider named Microsoft (MSFT) veteran Brian McAndrews its new chief executive and chairman, ending a six-month search.