( AFP / MARTIN BUREAU )
The audio streaming platform Spotify published mixed results for the third quarter on Tuesday, but investors were attracted by the improvement in the profitability of the Swedish group.
The turnover stood at 3.98 billion euros, up 19% over one year, according to a press release, compared to 4.03 expected by analysts.
The service now has 640 million monthly users (+11% year-on-year), and 252 million paying subscribers (+12%). The growth of the latter is particularly strong in Latin America.
The profit was almost quintupled (+361%), to reach 300 million euros.
This jump is largely attributable to cost control as well as an increase in the price of paid subscriptions in several markets, including the United States.
In December, Spotify announced the layoff of 17% of its workforce, or around 1,500 people, after two first waves of job cuts in January and June.
CEO Daniel Ek spoke at the time of the need to reduce “the gap between our financial objectives and the current level of our operating costs”.
This repositioning has allowed Spotify to systematically improve its gross margin over the last five quarters, bringing it to a record level in the third quarter of 2024.
The platform sees further progress in the fourth quarter which should close the first profitable financial year in the history of the Swedish company.
The company has also reduced its marketing spending, after having invested heavily in podcasts in particular.
The publication was well received by investors. In electronic trading after the close on Wall Street, the stock gained more than 6%.
Beyond that, “the story of 2025 is growth and profitability”, declared Daniel Ek during the conference call presenting the results, insisting on the importance of the “mixture of the two”.
The group therefore intends to continue to invest and innovate while remaining profitable, explained the founder.
Spotify intends in particular to rely, in addition to music and podcasts, on its offering of music videos and audio books, detailed Daniel Ek.
