New subscribers pare Napster loss

Napster Inc., the pioneer of digital music downloading, said its fiscal third-quarter loss narrowed as its online and mobile music services added subscribers.

The net loss of $2.83 million, or 6 cents a share, compares with a loss of $9.5 million, or 22 cents, a year earlier, the Los Angeles-based company said. Sales rose 16% to $32.8 million, missing the $33.4 million average of analysts’ estimates compiled by Bloomberg.

Napster expanded its mobile music offering with carriers including Japan’s NTT DoCoMo Inc. The number of subscribers increased 31% to 743,000 from a year earlier.

Napster shares fell 9 cents to $1.73 before the results were announced.

The company forecast sales in the fiscal fourth quarter of $29 million to $31 million, compared with $26.8 million a year earlier. Napster maintained its forecast that cash flow for the year ending March 31 would be positive.