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Revenues Soar, But N2K Posts $28 Million Loss for Year

Online music retailer N2K Inc. reported a net loss for the year ending Dec. 31 of $28.73 million, or $5.88 per share, compared to a net loss of $18.9 million, or $6.85 per share, for the prior year.

Revenues for the year were $11.26 million compared with $1.66 million for the prior year.

Revenues for the fourth quarter ended Dec. 31, 1997, were $4.75 million, compared to revenues of $679,000 for the fourth quarter of 1996. The company reported a net loss of $13.19 million or $1.26 per share for the quarter, compared to a net loss of $6.45 million a year earlier.

During the fourth quarter, page views on N2K's Music Boulevard site increased to 49.1 million from 39.6 million in the third quarter of 1997 and 10.4 million in the fourth quarter of 1996, the company said.

Larry Rosen, chairman and CEO of N2K said, "1997 was an exciting year for N2K with our successful initial public offering in October. The increase in revenues and page views reflects the initial launch of the integration of our service with our distribution network partners." He did not directly address financial issues.

The company recently added a Japanese distributor, Shinseido, adding 175,000 Japanese titles to its database and announced a plan for a European fulfillment center that will offer an additional 150,000 locally released titles. These agreements will make Music Boulevard's 550,000 title online store the largest collection of recorded music available on the Internet, the company said.

N2K's stock closed at $24.62 Thursday.