Music Significantly more users: Spotify increases operating profit
The music streaming service Spotify has significantly increased its profit in the second quarter. The number of paying users rose by seven million, the Swedish company announced on Tuesday.
23.07.2024, 13:57
SDA
The operating profit thus increased from 156 million euros in the first quarter to 266 million euros. Spotify is developing "at a speed that exceeds even our own expectations", explained CEO Daniel Ek. "It all looks very good for the future."
The service now reportedly has a total of 626 million active users, 246 million of whom have taken out a subscription. Non-paying users can use a limited offering with ad breaks.
In addition to the increase in paying users, Spotify emphasized the "improved profitability". In June, the service raised its subscription prices for the second time in a year. The increase in profits can also be explained by lower expenditure on marketing and personnel.
Since its foundation 18 years ago, the platform has invested continuously and, despite its success, has never reported a net annual profit and only occasionally achieved quarterly profits. In order to reduce costs, Spotify announced a third staff reduction program at the beginning of December 2023, with around 1,500 jobs to be cut.
