One of the most popular music streaming providers in the world has published its report for the second quarter of 2023, which reveals that the number of monthly active users has increased to 551 million – an increase of 27 percent – but despite all this, the company is still not profitable.
Spotify also performed well in the second quarter of the year, with 36 million new users of the platform, but not all of them converted to the premium subscription. Based on the data, the Swedish company was able to get 10 million new premium subscribers, 3 million more than they wanted, and they were able to reach the peak, because such an increase had not been seen before.
Despite the many positive data, Spotify continues to operate at a loss. Sales revenue in the last quarter amounted to 3.2 billion euros, which is an increase of 11% compared to last year, but at the same time it recorded an adjusted operating loss of 112 million euros. According to the company, the The loss is primarily due to the dismissal of fired employees, restructuring and the cessation of podcasting.
The streaming giant earlier told investors that it would raise prices to turn a profit. This will happen in many countries – 53 to be exact – users in the US will now have to pay a minimum of $11 per month, and in Hungary the prices haven’t been raised yet. It is not even ruled out that in the future the dice will roll and Spotify may finally break even.
