Spotify closed the first quarter with a net profit of 23 million euros, up from a loss of 145 million a year ago, while revenues grew 16% year-on-year to 2.15 billion euros.
At the end of March, the number of users of the music streaming platform reached a total of 356 million, with a 21% increase in the number of paying subscribers in one year, to 158 million, at the high end of the group’s forecasts and close to analysts’ expectations. In February, Spotify announced the launch of the platform in over 80 new countries with one billion inhabitants, including highly populated states such as Nigeria, Pakistan and Bangladesh. These launches have resulted in its presence in the vast majority of countries around the world, nearly 170. Since its IPO in 2018, this is only the fifth quarter of profit for Spotify, which has never made a net profit for a full year despite the huge kill in the online music market.
Meanwhile, the European Commission should have almost completed the assessment of the dispute against Apple for violation of antitrust rules. The Competition investigation was opened following Spotify’s complaint that Apple had demanded a 30% commission on all subscription fees for using the in-app purchase system for digital content. The Commission’s decision could come this week, according to the Financial Times. The EU investigation also concerns restrictions on developers’ ability to inform users of alternative purchasing options outside of apps.