Spotify accelerates user growth amid Corona crisis
The world's largest music streaming service Spotify has grown stronger amid the coronavirus pandemic. The number of monthly active users rose 31 percent to 286 million, Sweden-based Spotify said Wednesday.
Of these, 130 million would have subscribed to the premium service, for which monthly fees are payable. This was more than expected. The Spotify share, which is listed in New York, rose almost two percent in pre-market trading. In the same period last year, monthly user numbers had climbed by 25 percent.
Advertising revenues below expectations
Sales of the music streaming pioneer, which now competes with offerings from Apple, Amazon and Tencent Music, rose 22 percent to $1.85 billion at the start of the year. In contrast, advertising revenues did not increase, contrary to management's expectations. Spotify explained this with the effects of the Corona crisis: In March, advertising campaigns were cancelled or paused.
Fewer settings
Due to uncertainties about the economic impact, job growth will be slowed, Spotify announced. Operating loss narrowed to $15 million in the first quarter from $47 million in the year-ago period.
In the current quarter, Spotify aims to increase the number of monthly active users to between 289 million and 299 million, boosting revenue to between $1.75 billion and $1.95 billion. At the same time, management lowered its 2020 total revenue forecast to a range of $7.65 billion to $8.05 billion from the previous $8.08 billion to $8.48 billion. (SDA)
