The world’s number one music streaming company, the Swedish Spotify, announced on Wednesday results for the third quarter up on a year, with a net profit of two million euros. This is its sixth net profit since its IPO in 2018. The number of active users reached 381 million (+ 19% over one year) at the end of September. Main source of income, paying subscribers are now 172 million (+ 19% also), said the group in its activity report. Spotify thus meets the expectations of analysts and its target announced in July which was 377 to 382 million users (from 170 to 174 million paying users). The Swedish giant, headquartered in Stockholm but listed on the New York Stock Exchange, hopes to pass the mark of 400 million users (from 177 to 181 million paying) by the end of the year.
It recorded a net profit of 2 million euros over the July-September period, while analysts expected a net loss. “We had another quarter of strong advertising growth and user engagement indicators in many markets showed encouraging signs of growth,” the group said. Around the same time last year, the group recorded a loss of 101 million euros, largely due to higher operating expenses. Spotify reported revenue of 2.5 billion euros in the quarter, up nearly 27% year-on-year, according to its financial report. Since its IPO in 2018, Spotify has never generated a full year net profit despite its success in the online music market. Last year, the Swedish flagship of online music tripled its net loss to 581 million euros, mainly due to the good performance of its stock on the stock market. The former Stockholm-based start-up indeed uses a compensation mechanism for its employees indexed to the stock market price.