Business

Spotify quarterly revenue beats on subscriber growth

Spotify Technology SA beat Wall Street estimates for fourth-quarter revenue on Wednesday, as the music streaming company hit 155 million paid subscribers for its premium service.

A trader is reflected in a computer screen displaying the Spotify brand before the company begins s
A trader is reflected in a computer screen displaying the Spotify brand before the company begins selling as a direct listing on the floor of the New York Stock Exchange in New York, U.S., April 3, 2018. REUTERS/Lucas Jackson

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STOCKHOLM: Spotify Technology SA beat Wall Street estimates for fourth-quarter revenue on Wednesday, as the music streaming company hit 155 million paid subscribers for its premium service.

Premium subscribers, who account for most of its revenue, were up 24per cent from a year earlier. Analysts on average were expecting the company to have 153.26 million paid subscribers, according to IBES data from Refinitiv.

Total monthly active users rose 27per cent to 345 million.

Spotify said the pandemic had had little impact on its subscriber growth, though it may have contributed positively to pulling forward new signups.

Revenue rose 17per cent to 2.17 billion euros (US$2.61 billion) for the three-months ended Dec. 31, from 1.86 billion euros a year earlier. Analysts were expecting revenue of 2.15 billion euros, according to IBES data from Refinitiv.

(US$1 = 0.8325 euros)

(Reporting by Supantha Mukherjee in Stockholm; Editing by Simon Johnson)

Source: Reuters