O Spotify released this Wednesday (31) its second quarter 2019 financial results with good numbers of subscribers: the music service gained 8 million users of Spotify Premium in three months and increased to 108 million payers worldwide, guaranteeing itself ahead of the 60 million of Apple Music.
The company still does not have consistent profits, but has reduced the gap: the net loss between April and June was € 76 million (approximately R $ 320 million), against losses of € 394 million (R $ 1.66 billion) in the second quarter 2018. Revenues reached € 1.67 billion (R $ 7.03 billion), with 90.1% of revenue coming from Premium users and 9.9% from ads for the free version.
According to Spotify, the result was impacted by the increase in “social costs”, which are taxes associated with wages, benefits and share-based compensation. The company, which is publicly traded on the New York Stock Exchange, saw its stock price rise, which also caused rates to rise, especially in Sweden, where the company is headquartered.
Spotify’s plan to grow is based primarily on podcasts – Tecnocast is there. “Tens of millions of users are now listening to podcast content monthly, and more are discovering new forms of audio content every day. Our podcast audience grew by more than 50% per quarter and has almost doubled since the beginning of the year ”, says the company in notice to investors.
Some of the exclusive podcasts will be the result of a partnership with Higher Ground, producer of Barack Obama and Michelle Obama. They will “develop, produce and lend their voices to selected podcasts, connecting with listeners from around the world on a variety of topics”.
Considering Spotify Free, the service ended the quarter with 232 million monthly active users, above the company’s expectations. By the end of the year, the company estimates between 250 and 265 million active monthly users, between 120 and 125 million subscribers, and a financial result between a profit of € 31 million and a loss of € 131 million.