(Reuters) – Spotify anticipated Tuesday a profit above expectations for its first quarter, the Swedish giant of audio streaming benefiting from constant growth in the number of users, an increase in prices and its cost reduction program .
The action takes more than 9% in the trade-to-day exchanges.
The group said they plan to operate an operating profit of 548 million euros for the current quarter, against an average estimate of analysts of 450.6 million euros, according to data compiled by LSEG.
Spotify increased prices for its services in June 2024 and seeks to reduce spending, including marketing, in order to increase margins.
According to analysts, the emphasis on music and video podcasts has helped attract users.
Spotify has extended the beta deployment of its music video functionality to new markets and has introduced new features to improve user engagement with content creators in certain markets.
The company has planned an active number of monthly users (UMA) of 678 million in the first quarter, online with estimates at 679.4 million, and plans to add approximately 2 million premium subscribers, which would bear the total At 265 million, above the estimates of Visible Alpha at 263.2 million.
In the fourth quarter, the number of premium subscribers increased by 11% to reach 263 million, against 260 million expected by Visible Alpha.
The company also provides for a turnover of 4.2 billion euros for its first quarter, slightly higher than estimates at 4.17 billion euros.
(Written by Jaspreet Singh in Bangalore; Diana Mandiá, edited by Kate Entringer)
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