Spotify Packs on More Premium Subs in Q2 Than Expected to Reach 220 Million, Projects Slower Growth After Price Hikes
25.07.2023 - 10:23
/ variety.com
Todd Spangler NY Digital Editor Spotify, the world’s biggest music and audio streaming service, delivered strong numbers for the second quarter of 2023 — beating forecast user growth on paid subscribers and total listeners, while Q2 revenue was in-line with expectations. But with newly announced price increases for Spotify Premium in dozens of markets including the U.S., the company is forecasting a smaller gain in paid subscribers for Q3. The company netted 10 million new Premium customers in the quarter (over its expectations of 7 million), to stand at 220 million. Overall, Spotify had 551 million monthly active users for the period, a pickup of 36 million sequentially — an all-time high for the company.
Spotify’s Q2 revenue of €3.18 billion was up 11% in Q2 reflecting 11% growth in subscription revenue and 12% growth in ad revenue. Adjusted operating loss — excluding charges related to layoffs of 200 employees in the quarter related to a reorganization of its podcast division and other cost-reduction initiatives — was -€112 million (better than it previous guidance of -€129 million).
For Q3, Spotify projects adding 4 million Premium subscribers — slower than recent quarters, coming after price increases in major markets — and a gain of 21 million MAUs overall. The company said it anticipates revenue of €3.3 billion for the September quarter, noting “announced price increases are expected to have a minimal impact on total revenue in Q3.” Spotify on Monday announced its first price increase in the U.S. — its largest market — with the individual premium plan going up by $1/month, to $10.99 monthly, matching recent price hikes by rivals including Apple Music, Amazon and YouTube. The company also is raising fees in
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