While Spotify continued to rise with the number of subscribers, the profit margin of the company decreased. Spotify could not find a solution to the decline in operating profit.
Spotify is growing with the number of subscribers
Spotify, the most popular online music streaming platform, is successfully going through the pandemic period. The fact that users are more interested in online has a positive effect on Spotify’s report card.
According to the published third quarter results, Spotify managed to gain 6 million more paid subscribers. Thus, the total number of paid subscribers of the company reached 144 million. Spotify’s 4 million and analysts’ estimation of 5 million did not come true, and Spotify performed above expectations.
When we look at the total number of subscribers of Spotify, including free subscribers with ads, we see that it reached 320 million subscribers with an increase of 29 percent. The fact that Spotify started operations in 12 different regions, including Russia, had a big share in this.
Although the company increased the number of subscribers, it could not prevent a decrease in operating profit. The revenue generated by the company reached 1.9 billion euros with an increase of 14 percent compared to the same quarter of last year. However, the operating loss of the company was reported at 40 million euros.