Spotify turns in record quarterly profits grows premium subscribers to 246million – despite controversies

nme.com:

Spotify has revealed that it has topped expectations with its profits and number of premium subscribers this quarter – despite controversies surrounding the platform.The figures for the second lquarter of 2024 were shared yesterday (July 23), and saw the streaming giant turn in a record profit that exceeded expectations, as well as an increase in seven million paid premium subscribers.In the report, Spotify revealed that it had a Q2 revenue of €3.81billion (£3.2b) – an increase by 20 per cent since the last quarter – and a net profit of €274million (£230m), versus a loss of €302million (£253m) the year prior.It also shared that operating costs had decreased by 16 per cent, and the gross margin for the period was ahead of expectations, coming in at 29.2 per cent compared to 2023’s 24.1 per cent.By the end of Q2, Spotify stands at 626million monthly active users, a gain of 11million, and 246million of which are subscribed to Premium – an increase of seven million.

Elsewhere, ad-supported revenue in the quarter grew by 13 per cent, and shares of the platform have expanded by over 12 per cent since the figures were revealed.While Spotify told its shareholders that the spike in figures stemmed from “healthy subscriber gains, improved monetization and record profitability”, it should also be noted that the profits have also been impacted by more controversial decisions made by the brand recently.These include the streaming service raising prices for most of its existing plans in early June – something which Spotify made a nod towards in its recent statement.