Spotify certainly reported a rise in the number of users during the second quarter, but that did not prevent the share price from collapsing. The company’s interim report – which came on Tuesday – reported a worse result than analysts expected.
Revenue rose to 3.18 billion euros — an 11 percent year-on-year increase — but analysts had on average expected revenue of 3.21 billion euros, according to a compilation of forecasts compiled by Bloomberg.
Earnings per share were -1:55 euros, against the expected -0:63 euros.
But Spotify still sees the future brightly. The number of monthly users rose by 27 percent – to 551 million – and the number of premium subscribers increased by 17 percent to 220 million. The increase in the number of users can be compared with an average forecast among analysts of about 530 million monthly users and 217 million premium subscribers.
On Monday, Spotify announced a price increase for its premium subscribers in the US: from $9.99 to $10.99. The price was also raised in other markets, including Sweden, Great Britain and Australia.
Spotify went public in New York just over five years ago.