Thanks to cost cutting and revenue growth, the music platform posted net attributable profit of €274 million in the second quarter.
The musical platform Spotify got a net attributable profit of €274 million in the second quarter compared with a loss of €302 million in the same period last year, thanks in part to an increase of 7 million subscribers, one million more than expected, the company reported. This data boosted the shares on Wall Street, which advanced in premarket by 13.8%.
“Our business continued to perform well in the second quarter, thanks to the “increased subscribers, improved monetization and record profitability”Spotify said in its financial results presentation. In the first quarter, the platform had achieved a net profit of €197 million.
The platform’s revenues amounted to €3.807 billion in April-June, up 19.8% compared to the second quarter of 2023. Operating profit amounted to €266 million, up 58.3%. Operating costs fell by 16% to €846 million.
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This was mainly due to some lower personnel costs and other related costs and lower marketing expenses, which were partially offset by €59 million in social expenses, the company said. The number of monthly active users increased by 14% to 626 million, although the target was to reach 631 million.
However, the number of premium subscribers was above expectations, increasing by 12% to 246 million, 1 million more than the target.
Free cash flow was €490 million in the second quarter, a record figure, as a result of higher net profit adjusted for non-cash items and favorable net working capital.
New Spotify release
After the resounding success of AI DJ in English, Spotify listened to its users in Latin America and Spain and finally introduced AI DJ in Spanish: a new tool to listen to and discover music through the use of artificial intelligence.
“In case you missed it: DJ is a personalized AI guide that knows you so well it can choose what music to play for you,” reads a press release introducing the new feature.
The tool was named Livi and uses the voice of aSenior Music Editor at Spotify Based in Mexico City, Olivia “Livi” Quiroz Roa, a music expert who has dedicated her entire life to the industry.
As long as you have a subscription to Spotify Premiumyou will be able to find your personal DJ by simply opening the Spotify app on your iOS/iPhone or Android device. From there you will need to go to the “Music” on Home and tap the option DJor find it in the hub “Specially for you” within the Search tab.
DJ will offer a selection of music especially for you, along with brief comments in English about the songs and artists. In case the song is not for you, simply press the DJ button at the bottom right of the screen to explore another genre, artist or mood.
Source: Ambito
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