CDNow Inc, the online music retailer set to be acquired by Columbia House, posted second-quarter results that topped analysts estimates as revenue nearly tripled. The New York-based company reported a net loss of $31.7m, on revenue up 198% at $34.6m, compared with a net loss of $8.9m in the year-ago period. The net loss included $8.1m in charges related to acquisitions, net of which the loss was $0.79 per share. Analysts surveyed by First Call were expecting a wider loss of $0.89.
The company says it added 332,000 new customers during the second quarter, taking the total number of unique customers who have purchased from CDNow or Music Boulevard since the original launch of each store to roughly 2.4 million. Repeat customer purchases accounted for 66% of the quarter’s product revenues, up from 57% a year ago for CDNow alone. International sales represented 20% of overall product revenues in the quarter. For the six-month period, net loss was $50.8m on revenue up 166% at $57.5m, compared to a loss of $18.1m last year.
