Stockholm (AFP) – Music streaming giant Spotify on Tuesday reported a 12-percent rise in paying subscribers in the first quarter to 268 million, along with a record operating profit.
“The underlying data at the moment is very healthy: engagement remains high, retention is strong, and thanks to our freemium model (of free and paying users), people have the flexibility to stay with us even when things feel more uncertain,” Spotify chief executive Daniel Ek said in a statement.
The Swedish group had 678 million active users at the end of March, up by 10 percent from a year ago and in line with its guidance. The number of paying subscribers, which account for most of Spotify’s revenue, grew to 268 million, slightly higher than its guidance of 265 million.
Operating profit soared by 203 percent to 509 million euros ($580 million), but it was lower than its forecast of 548 million euros. The figure “was below guidance as gross profit strength and lower personnel …and marketing costs were more than offset by 76 million (euros) in social charges,” the group said.
Sales rose by 15 percent to 4.19 billion euros. According to the Financial Times, Spotify is preparing to raise its prices in dozens of countries in Europe and Latin America this summer.
Spotify logged its first-ever annual profit in 2024 of 1.1 billion euros, as it brought costs under control and raised fees for paying subscribers in several markets, including the United States. The Swedish company is among the winners on Wall Street since the start of the year, with its share price up 34 percent.
© 2024 AFP
