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Lovefilm cuts losses, revenues up

LoveFilm has lowered its pre-tax loss to £934,000 (E1.06m) in 2009, from £7.4 million in 2008, as revenues increased by one third. The online film rental service reported its paying subscriber base was up 29 per cent in 2009 across its markets in the UK, Germany, Norway, Denmark, and Sweden, boosting revenues by 32.9 per cent to £97.2 million, from £73.1 million in 2008.

Lovefilm CEO Simon Calver said that Lovefilm’s UK penetration was still relatively low at 4 per cent, but added that is was adding more users as word of mouth spread. On an adjusted basis, Lovefilm posted an operating profit of £8.9 million for 2009, compared to £3.5 million in 2008.


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