TECH

Spotify reaches 130 million subscribers, exceeding estimates

Spotify had a higher than expected jump in paid subscribers to the service, and the 31% increase brought the number of subscribers to 130 million, and the company had a 22% increase in revenue in the first quarter, resisting the slowdown in sales of ads due to the coronavirus pandemic.
The company, which launched its service more than a decade ago and faces stiff competition from Apple and Amazon, generates revenue by charging subscriptions and showing ads to free users.
"We are fortunate that, as a company, we are able to operate with very little disruption and our hope is that providing music, information and an escape for many can provide joy and comfort," the company said on Wednesday.
For the second quarter, Spotify expects a number of subscribers in the range of 133 to 138 million. Analysts had expected 136.5 million, according to data from Refinitiv.
It also predicted total revenue in the range of 1.75 billion euros to 1.95 billion, below expectations of 2.02 billion euros, also according to data from Refinitiv.
First-quarter paid subscribers, however, increased 31% over the previous year. Analysts had expected 128.6 million subscribers.
Revenue rose to 1.85 billion euros in the quarter ended in March, compared to 1.51 billion euros in the previous year. Analysts had expected 1.86 billion euros.
The company reported a attributable loss to shareholders of 0.20 euro per share. Analysts had expected a loss of 0.49 euros per share.

By Supantha Mukherjee and Ken Li