Spotify breaks Q1 revenue forecast
http://www.hrlnews.com/2019/04/spotify-breaks-q1-revenue-forecast.html
Music streaming company Spotify Technology SA reported a
better-than-expected rise in first-quarter revenue on Monday as it hit
100 million paid subscribers for its premium service, sending its shares
up nearly 5 percent.
The global leader in the sector, with double the number of
subscribers of nearest rival Apple Music, Spotify has launched in
regions like India, Middle East and North Africa in recent months,
seeking to fuel the next stage of its development as it continues to
price aggressively in the developed world.
Spotify said it had 217 million monthly active users (MAUs) in March,
up from 173 million in the same quarter a year earlier. Analysts on
average were expecting the company to have 218.6 million subscribers,
according to research firm FactSet.
Premium or paying subscribers at the end of the quarter were 100
million, up from 75 million a year earlier. Analysts were expecting the
company to have 99 million paid subscribers.
Revenue rose 33 percent to 1.51 billion euros ($1.69 billion),
beating analysts’ estimates of 1.47 billion euros, according to IBES
data from Refinitiv.
Europe contributed 40 percent of the total paid subscribers, followed by North America with 30 percent.
Spotify said it expects to have about 107 million to 110 million premium subscribers by the end of the current quarter.
Spotify also said it expects total revenue of 1.51 billion euros to
1.71 billion euros for the second quarter. Analysts were expecting it to
forecast 1.62 billion euros.
The company reported a loss attributable to shareholders of 0.79
euros per share. Analysts were expecting a loss of 0.35 euros per share.
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