Spotify makes a profit again in the first quarter

Spotify made a profit again in the first quarter. The company benefited from thousands of job cuts and price increases for its music offering.

Piraterie

Despite higher prices, more people subscribed to the streaming service's paid offering in the first quarter of 2024. The number of premium users rose by 14 percent year-on-year to 239 million, as the company announced in Stockholm on Tuesday. Spotify had a total of 615 million monthly active users, almost a fifth more than at the end of March 2023.

For the current second quarter, CEO Daniel Ek is confident that he will be able to win more customers for Spotify. The manager is also aiming to generate an operating profit of around 250 million euros between April and the end of June. That would be a good 40 percent more than what industry experts have on their lists.

The reduction of around 1,500 jobs announced last year and reduced marketing budgets had a positive impact on the balance sheet. In the first quarter, the company made an operating profit of 168 million euros. In the previous year, the company had reported an operating loss of 156 million euros. The bottom line for shareholders was a profit of 197 million euros, compared to a loss of 225 million euros a year earlier. Spotify was also still in the red in the final quarter of 2023. (SDA/swi)

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