News - 26/05/2016

Kobalt sees 25% increase in revenues but losses widen

Kobalt sees 25% increase in revenues but losses widen

Kobalt unveiled its 2015 financials this week, showing that the company is still investing heavily in growth and is not thinking about short-term profits (Billboard reports). 

Kobalt's revenues grew by 25% in 2015 over the previous year, reaching $245 million, however its losses grew by 47% from $18.5 million to $27.3 million. This is generally not a great sign for a company, since as revenues grow the percentage of loss should come down (Spotify finally managed to achieve this in the latest financial results).

However, Kobalt is still in growth mode and interested in ensuring that it stays ahead of the pack when it comes to the breadth of its services and the techology that it provides rights holders. 

The company's brightest spots were growth of its publishing business in the US, where it increased from $83 million to $121 million, and its neigbouring rights division which posted a 127% increase to just under $21 million. 

The company recently launched a mobile app that allows rights holders to monitor the performance of their tracks in real time, and has undoubtedly developed one of the most sophisticated royalty tracking systems available. If investors are willing to back Kobalt all the way the company has the potential to become one of the most influential voices in the music industry ecosystem, however there will come a point where they will want to see, if not profits, at least the potential of profits being generated. 

 

(Andrea Leonelli) 

 

 

 

 

 

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