Sweden’s Spotify Technology, operator of the music streaming service of the same name, has increased its net profit by 14 per cent in the first quarter of 2025 and posted a record operating profit.
The company said in a press release that its net profit in the January-March quarter was €225 million, or €1.07 per share, up from €197 million, or €0.97 per share, in the same period a year earlier.
The company’s operating profit jumped to a record 509 million from 168 million in the first quarter of 2024, but was below the consensus forecast of analysts polled by Visible Alpha, who estimated it at 548 million.
The company’s quarterly revenue was up 15% to €4.2bn, as analysts had expected.
The number of active users of the service (account activity at least once a month, MAU) totalled 678 million at the end of March, up 10% year-on-year. The indicator coincided with the company’s February forecast.
Spotify’s number of paid subscribers increased 12% year-over-year to 268 million last quarter, up from the 265 million expected in February. Average revenue per paid subscriber rose 4 per cent to €4.74.
According to Spotify’s forecast, in the second quarter the number of active users of the service will reach 689 million people, paid subscribers – 273 million, revenue will reach 4.3 billion euros.
The company’s shares are down 4.2 per cent in early trading in New York on Tuesday. Their price has risen 33.6 per cent since the beginning of the year.