Business News Digital Industry People

Shazam losses widen as it expands and diversifies

By | Published on Tuesday 1 September 2015


Shazam may be busy diversifying its business model, and gathering up ever increasing numbers of users, but that didn’t stop it losing £14.8 million in 2014.

Actually, thinking about it, the diversifying business model and rampant user acquisition was probably behind the £14.8 million in losses. Which is just as well, because “revenue model diversification” and “large-scale consumer acquisition” are just the kind of excuses tech investors like to swallow when companies make a £14.8 million loss. Because, as we all know, all tech investors are idiots. Though, I will concede, some are lucky idiots; ie the billionaire ones.

According to a Companies House filing by Shazam Entertainment, the content identification app’s parent company had revenues of £36 million for the last financial year, with an operating loss of £13.8 million and a net loss of £14.8 million. Revenues were actually up 113%, but expenses rose by 126% resulting in an increased loss overall. The service’s user-base grew from 86 million to 120 million.

In other Shazam news, the company has seemingly appointed James Pearson to the role of VP Global Communications, where – PR Week notes – he takes over from Brendan Lewis who departed back in June after just six months with the company. Pearson has some experience of the digital music sector having previously been comms guy for Grooveshark which, for some reason, doesn’t need anyone to communicate on its behalf any more.