Spotify, a leader in the streaming music industry, reported a 12-percent increase in paying subscribers in the first quarter to 268 million, as well as a record operating profit.
According to Spotify’s CEO, Daniel Ek, “the underlying data is very healthy right now: engagement is high, retention is strong, and people have the flexibility to stay with us even when things feel more uncertain.”
At the end of March, the Swedish company had 678 million active users, up 10% from the previous year. This is in line with its forecast.
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The number of paying subscribers, who make up the majority of Spotify’s revenue, increased to 268 million, slightly over the 265 million forecast.
Operating profit increased by 203 percent to 509 million euros ($588), but it was lower than the anticipated 548 million euros.
The group claimed that the figure “was below forecast as gross profit strength and lower personnel were more than offset by 76 million (euros) in social charges.”
Sales increased by 15% to 4.19 billion euros.
Spotify is reportedly planning to raise its summer prices in dozens of European and Latin American nations, according to the Financial Times.
As a result of controlling costs and lowering fees for paying subscribers in various markets, including the United States, Spotify recorded its first-ever annual profit of 1.1 billion euros in 2024.
With a 34 percent increase in the share price, the Swedish company has been one of Wall Street’s biggest winners since the start of the year.
Source: Channels TV
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