(Reuters) – Spotify Technology SA (AD.N) on Wednesday posted a bigger-than-expected quarterly loss as it added fewer subscribers than estimated.
FILE PHOTO: The first logo will be displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, New York, USA, on 3 May 2018. REUTERS/Brendan McDermid/File Photo
Spotify said it now has 108 million premium subscribers, an increase of 30% from a year earlier, but missed analysts ‘ expectations of 108.5 million euros.
The revenue generated from premium subscriptions, which account for nearly 90% of the total turnover, and increased to 1.50 billion euros ($1.67 billion) in the second quarter of the year.
The company’s monthly active users, including the ad-supported free version, and it grew by 29% to € 232 million and beat expectations of 227.7 million people, according to IBES data, Refinitiv.
Spotify is expected to be between 240 million and 245 million monthly active users in the third quarter of the year. Analysts had expected at the end of the current quarter, with 242 million users.
Since the launch of the service for more than a decade ago, Spotify has to overcome the resistance from the major record labels and major artists, but to change the way people listen to music.
It is, however, still faces intense competition from Apple Inc’s (AAPL.(O), and others.
Revenue rose to 1.67 billion euros for the three months ended June 30, from 1.27 billion euros a year earlier, beating analysts ‘ estimates of 1.64 billion euros, according to IBES data, Refinitiv.
The net loss attributable narrowed to 76 million euros, or 0.42 euro per share, as compared to 394 million euros, or 2.20 euros per share, a year earlier.
Analysts had expected a loss of 0.32 euro per ordinary share.
Reporting Sayanti Chakraborty in Bengaluru; Editing by Arun Koyyur