Spotify burns through cash
Spotify, the Swedish digital music service that has been valued at $3bn, doubled its revenues in 2012 but burnt through cash as it attempted to grab a bigger share of the fast-growing market. The company’s results show that its sales surged from €190.4m in 2011 to €434.7m in 2012, as active users doubled to more than 20m. However, net losses widened to €58.7m, against €45.4m in 2011. The results highlight a worry in the music industry that, while demand for streaming is growing fast, some of the largest companies in the market are yet to make a profit.
The Croods boosts DreamWorks
DreamWorks Animation beat expectations in the second quarter thanks to a better than expected box office performance from The Croods, its film about a prehistoric family. But profits for 2013 will be constrained by the disappointing release of Turbo, its recent movie about a racing snail, which had a weaker than expected opening weekend performance in the US.
US banks hit by debit card fee ruling
The Federal Reserve was criticised yesterday for being too soft on the financial industry after a judge ruled that limits on debit card fees charged to retailers were not tough enough.
Ryanair backs hand luggage fees
The boss of Ryanair has declared all-out war on luggage by pledging to price passengers out of bringing bags on flights — and even hinting at fees for hand baggage. “It’s unlikely in the short term but probably inevitable in the long term,” Michael O’Leary said.
Greencore recovers from horsemeat
Greencore, the UK’s largest sandwich-maker said the market was still recovering from the horsemeat scandal, despite sale rising 2.6 per cent to just under £305.8m in the third quarter.
The Daily Telegraph
Fuel duty to be cut in remote regions
Drivers in remote rural areas will be offered a cut in fuel duty under plans to be announced by the Treasury. Ministers will say that motorists living in isolated parts of Devon, Northumberland, North Yorkshire and Wales could be in line for a reduction of 5p a litre at the pumps.
British Gas backs free power days
British Gas is planning to offer customers “free electricity” on Saturdays, when demand is lower, in a radical step that could reduce the strain on the power grid during the week.
THE WALL STREET JOURNAL
EADS reshapes itself as Airbus Group
Aerospace group EADS yesterday set out a radical revamp of its activities, bringing its defense and space operations under one roof and renaming the company Airbus Group in a bid to streamline the company’s structure, improve profitability and sharpen its corporate image.
Burger King profits earnings up
Burger King Worldwide second-quarter earnings rose 30 per cent as stronger same-store sales in Europe, the Middle East and Africa helped offset weakness in North and Latin America.