Spotify Revenue Up But New Subs Numbers Fail To Impress
Music streaming platform Spotify’s lower-than-expected additional paid subscriber numbers sent its shares plunging by as much as 5% lower in trading before the bell.
While premium subscriber numbers rose 30 percent from a year earlier to 108 million, the figure narrowly missed analysts’ expectation of 108.5 million.
CEO Daniel Ek told shareholders the company expected to “make up lost ground before year-end.”
Revenue from premium subscribers, which accounted for nearly 90% of its overall revenue, rose to 1.50 billion euros (A$2.43 billion) in the second quarter.
Ek said Spotify delivered 31% year-over-year subscriber growth, “which we believe is roughly twice the rate of growth of our closest competitor.”