Swedish music platform Spotify lost 302 million euros in the second quarter of 2023, more than double the negative 125 million in the same period last year, despite growing in income and users. After this news, the company’s share falls more than 5% in premarket.
The turnover of the platform grew by 11% between April and June 2023 compared to the same period in 2022, to 3,117 million, thanks to the growth in subscribers and the increase in income for advertising, according to the data published this Tuesday.
Specifically, the company billed 2,773 million for its premium services (11% more), while its income from advertising they grew by 12% year-on-year, to 404 million.
Spotify recorded operating losses of 247 million during the second quarter, compared to negative 194 million in the same period of the previous year, due to the impact of the closure of several podcast shows, the depreciation of real estate assets and compensation for dismissal.
In this area, the firm announced in June the dismissal of 200 workers from its division of podcastwhich represents 2% of its workforce, in what was its second round of job cuts in 2023.
Users grow above forecasts
At the user level, Spotify At the end of June 2022, it had 220 million people in its paid version, which represents 17% more year-on-year and exceeded its forecasts by three million, after experiencing the “greatest revenue net subscribers in the company’s history in almost all regions”.
This growth was led by Europe and Latin America and was positively impacted by the promotional campaigns carried out by the company during the quarter.
In addition, during the second quarter of 2022, the users The platform’s active users grew by 27% compared to the same period in 2022, to 551 million, driven by the good performance in Latin America, the growth of generation Z listeners, campaigns marketing and changes in the dynamics of competition in certain developing markets.
In fact, between April and June, the company added 36 million active users, which represents the further growth quarterly in its history and be above forecasts (21 million).
For the next quarter, the swedish platform It expects operating losses of 45 million and a turnover of US$3.3 billion.
In addition, it plans to increase its number of users to 572 million (21 million more) and that of subscribers payment up to 224 million (4 million more), despite having announced a general price increase of between one and three euros per month in more than 20 countries.
Source: Ambito
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