Technology

Spotify ups number of premium users by 40% in Q2

Spotify Technology S.A. announced on Thursday that the number of its premium subscribers increased by 40% on an annual basis, to amount to 83 million in the second quarter of 2018 and the company’s second fiscal quarter ever. At the same time, the number of the music streaming service’s Monthly Active Users (MAU) went up by 30%, totalling 180 million.

The company reported total revenue of €1.27 billion in the last quarter, growing 26% year over year, or 34% if adjusted for the negative impact from changes in foreign exchange rates. Premium revenue contributed with €1.15 billion, rising 27% annually, while ad-supported revenue stood at €123 million, advancing 20% in the second quarter compared to the same period a year ago.

The operating loss was reported at €90 million, including a €30 million cash expense related to company’s direct listing on the New York Stock Exchange in April. The Swedish-based firm announced it expects the number of premium subscribers to advance further in the third and fourth quarter, with total revenue in the ranges of €1.2-€1.4 billion and €1.35-€1.55 billion for the remaining two quarters of 2018, respectively.

Spotify’s shares fell 3.71% in pre-market trading on Wall Street shortly after the earnings results were announced.

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