Audible Inc. continues its slow march to profitability, cutting its net loss in the second quarter ended June 30 to $4.7 million from $8.1 million in the comparable period in 2001. The improved bottom line was the result of a 38.6% increase in revenues, to $2.7 million, and a decline in operating expenses from $10.3 million to $7.5 million. Company chairman Don Katz predicted that Audible should become "cash-flow positive" some time in 2003.
The company now has 161,000 customers, an 85% increase since last year's second quarter, and sales of consumer content jumped 112% in the most recent quarter, to $2.4 million. Audible is focused on driving up the number of subscribers to its monthly subscription service, and sales of consumer content represented 88.5% of revenues in the quarter, compared to 57.7% of sales in last year's second period. Among the titles most in demand in the quarter were The Remnant and The Beach House as well as several movie tie-in titles and books recommended by the various television reading groups.
Katz said Audible will now focus on increasing its consumer awareness and customer acquisition efforts. Both initiatives should be helped by the recent integration of the Audible audio service into Apple's iTunes and iPod products. "We want to turn Apple customers into our customers," Katz said. As part of its strategy to expand its distribution network, Audible also has new agreements with Fujifilm, Kenwood, SonicBlue and Mediabolic.
