Spotify: in the black with new subscribers
(CercleFinance.com) - Spotify continued to win new subscribers in Q3, enabling it to grow its revenue and post net profit.
The online music specialist announced on Wednesday that it now has 381 million users, up 19% from a year earlier, including 172 million paying members (+19%).
The Swedish group's Q3 revenues rose by 27% to 2.5 billion euros at end-September.
New subscribers, combined with growth in advertising revenue enabled Spotify to generate an operating profit of 75 million euros, against an operating loss of 40 million a year ago.
Analysts at Jefferies say that all these figures are at the top of the target ranges that the group had set.
The fact Spotify is finally making money wooed investors, with the New York listed share closing up almost 6% at 289 dollars yesterday.
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