Spotify: second-quarter loss narrows despite investments
(CercleFinance.com) - Spotify Technology narrowed its operating loss last quarter as the music-streaming giant added more subscribers and increased its revenue.
Despite heavy investments in podcasting, the Swedish group's operating loss was just 3 million euros in the second quarter, compared to a loss of 90 million euros in the second quarter of 2018.
The company said the number of monthly active users ("MAUs") rose by 29% to 232 million over the past quarter, outpacing its forecast range of 222-228 million.
Spotify said it finished the second quarter with 108 million "premium" or paid subscribers, up 31% year-on-year, but below the midpoint of its guidance range of 107-110 million.
The group reported second-quarter revenue growth of 31% to 1.5 billion euros.
"The most significant source of upside has been improvement in long-term retention," Spotify said.
For the third quarter, the group is aiming at 240-245 million monthly active users and 110-114 million "premium" subscribers.
Investors seemed to be skeptical, however, with the shares down over 5% on the Nasdaq in early-morning trading.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Despite heavy investments in podcasting, the Swedish group's operating loss was just 3 million euros in the second quarter, compared to a loss of 90 million euros in the second quarter of 2018.
The company said the number of monthly active users ("MAUs") rose by 29% to 232 million over the past quarter, outpacing its forecast range of 222-228 million.
Spotify said it finished the second quarter with 108 million "premium" or paid subscribers, up 31% year-on-year, but below the midpoint of its guidance range of 107-110 million.
The group reported second-quarter revenue growth of 31% to 1.5 billion euros.
"The most significant source of upside has been improvement in long-term retention," Spotify said.
For the third quarter, the group is aiming at 240-245 million monthly active users and 110-114 million "premium" subscribers.
Investors seemed to be skeptical, however, with the shares down over 5% on the Nasdaq in early-morning trading.
Copyright (c) 2019 CercleFinance.com. All rights reserved.