Spotify, quarterly results above expectations thanks to boom in subscribers
There are 252 million subscribers and 640 million active users. Turnover at 3.99 billion and operating profit at 454 million
1' min read
1' min read
A good third quarter 2024 for Spotify, the world's leading music streaming platform. Subscribers to its premium service and profit margins grew, thanks in part to lower marketing and personnel costs that helped the Wall Street-listed Swedish company overcome a difficult period for advertising.
The company founded by Daniel Ek, after the already good performance reported last summer, reports that subscribers rose to 252 million, beating analysts' estimates of 250.1 million. Total monthly active users rose to 640 million, again beating estimates.
Spotify seems to benefit from the staff cuts decided at the end of last year, but also from the boost of continued growth. Gross margin rose to 31.1 per cent, exceeding Wall Street expectations, and operating profit rose to EUR 454 million.
Revenue for the quarter increased by 19% to EUR 3.99 billion, missing the average of EUR 4.03 billion estimated by analysts. Advertising revenues increased by 6%, but were held back by the still low prices in the music and podcast sector.
After the results announcement, Spotify's shares rose 11 per cent to $465. They have more than doubled in value this year, reflecting investors' confidence in the company's ability to grow, raise prices and increase profits.
