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Spotify Prepares Investors For Stalled Subscriber Growth

Shares of Spotify fell yet again overnight, after the streaming service projected lower profit margins, and warned that subscriber growth has slowed in the current quarter.

With its 180 million premium subscribers in line with earlier forecasts, it’s not dire for the streaming service just yet, but Spotify warned investors that its gross profit margin would fall in the current quarter from 26.5 per cent to 25 per cent.

In addition, it projects adding just three million premium users during this period, a slowdown from the past two years of rapid growth.

Spotify reported a quarterly loss of A$62 million, with revenues increasing 24 per cent to A$4.2 billion.

Spotify’s shares fell 10.9 per cent to $US171.00 following this news.

The company celebrated “continued momentum in our subscription business and meaningful advertising results. We see a tremendous amount of greenfield on the horizon.”

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