Spotify was able to further increase its number of users in the first quarter of this year and even crossed its expectations about customers paying. The sales had reached the target, but the operational profit is less than the forecast. Music streaming service is also careful with Outlook, so that investors initially dropped the price of the Spotify share of about 10 percent. This stock is re -healed during exchange day, but is easily made in minus.
The view of the number of users is quite positive. For example, Spotify recently counted a total of 678 million per month, three million more at the end of 2024 and even 10 percent more than the previous year. It is interesting that the number of free -Listen users who accept advertisements has recently fallen from two million to 423 million, while there are five million more paying customers than the previous quarter, which are now 268 million. Both market supervisors and Spotify expected themselves to pay only 265.2 million payments.
More income with membership compared to advertisement
It also has a positive effect financially, as it is quite high with a customer paying with a spotify advertisement. Because in the first quarter, 90 percent of sales come from customers. This portion of Spotify’s income has increased 16 percent to 3.77 billion euros as compared to the previous year. Overall, Spotify was able to increase its quarterly business by 15 percent to 4.19 billion euros. However, advertising revenue has recently declined by 22 percent to 419 million euros, so that the total turnover was one percent more in the previous quarter, which became profitable for the first time after 17 years than Spotiff.
The bottom line was that Spotify continued to write black, as the net profit has increased by 32 percent to 1.33 billion euros every year. However, this is less than in the previous quarter, as it was three percent more profit. The operating profit has increased by seven percent compared to the quarter and is Spotify Compared to the year, even more than 509 million euros. However, music streammer himself expected 548 million euros here and thus recalled the target.
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For the second quarter of this year, Spotify is expecting a total business of growing 13 percent at night rate. At the same time, the operational benefits should be doubled compared to the previous year and increased by about six percent compared to the first quarter. In addition, the music streammer user considers the number to an increase by 689 million, but the analysts were Bloomberg according to 694.4 million users are expected to grow.
This approach oversees the overall positive growth of spotifes, which market supervisors also experience accordingly. In particular, there is a possibility to increase the potential value and ensure further increase in new tasks such as video podcast financially and users. Last year, Spotify introduced music videos for premium users and thus closed a difference for providers such as Youtube music and apple music, which already display music videos.
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Nevertheless, the Spotific share initially found a sponge and a short notice on New York Wall Street fell by 9.6 percent, when the paper had increased by 22 percent since the beginning of the year. During the Stock Exchange Day, however, the course was recovered and finally closed with minus less than half a percent.
(FDS)
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