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Despite rising prices – Spotify is making a profit

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Despite rising prices – Spotify is making a profit

The streaming provider Spotify is making a profit again. picture alliance / Sipa USA | SOPA Images

Spotify reports a profit in the first quarter of 2024 thanks to job cuts and price increases. The number of premium users rose by 14 percent to 239 million, and the streaming provider has a total of 615 million monthly active users. Company boss Daniel Ek is planning an operating profit of around 250 million euros in the second quarter.

Spotify made another profit in the first quarter. The reason was, among other things, the reduction of thousands of jobs and price increases for its music offering. Despite increased prices, more people subscribed to the streaming provider’s paid offering in the first quarter of 2024. The number of so-called premium users rose by 14 percent to 239 million compared to the same period last year, as the company announced on Tuesday. In total, Spotify had 615 million monthly active users, almost a fifth more than at the end of March 2023.

Spotify shares on the rise

For the current second quarter, company boss Daniel Ek is confident that he will be able to win more customers for Spotify. The manager also wants to make an operating profit of around 250 million euros between April and the end of June. The positive outlook also seems to be boosting the share price, with the company recording an increase of 135.2 percent over a year.

Spotify stock chart. Finance.net

The reduction of around 1,500 jobs and reduced marketing budgets announced last year had a positive effect on the balance sheet. In the first quarter, the company made an operating profit of 168 million euros. In the previous year, the company reported an operating loss of 156 million euros. The bottom line is that the shareholders now made a profit of 197 million euros, after a loss of 225 million a year earlier. Spotify was still in the red in the final quarter of 2023.

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Disclaimer: Stocks and other investments generally involve risk. A total loss of the capital invested cannot be ruled out. The articles, data and forecasts published are not a solicitation to buy or sell securities or rights. They also do not replace professional advice.

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