(Reuters) – Spotify Technology SA (SPOT.N) on Wednesday posted bigger-than-expected quarterly losses as it added fewer paid subscribers than estimated.
FILE PHOTO: The Spotify logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 3, 2018. REUTERS/Brendan McDermid/File Photo
Spotify said it now has 108 million premium subscribers, up 30% from a year earlier, but missed analysts’ expectation of 108.5 million.
Revenue from premium subscribers, which account for nearly 90% of its overall revenue, rose to 1.50 billion euros ($1.67 billion) in the second quarter.
The company’s monthly active users, which included its ad-supported free version, grew 29% to 232 million and beat expectation of 227.7 million users, according to IBES data from Refinitiv.
Spotify expects between 240 million and 245 million monthly active users in the third quarter. Analysts were expecting to end the current quarter with 242 million users.
Since launching its service more than a decade ago, Spotify has overcome resistance from big record labels and some major music artists to transform how people listen to music.
However, it still faces intense competition from Apple Inc (AAPL.O) and others.
Revenue rose to 1.67 billion euros for the three months ended June 30 from 1.27 billion euros a year earlier, beating analysts’ estimates of 1.64 billion euros, according to IBES data from Refinitiv.
Net loss attributable narrowed to 76 million euros, or 0.42 euros per share, compared with 394 million euros, or 2.20 euros per share, a year earlier.
Analysts were expecting loss of 0.32 euros per share.
($1 = 0.8973 euros)
Reporting by Sayanti Chakraborty in Bengaluru; Editing by Arun Koyyur