This Monday (28) Spotify presented its balance sheet for the third quarter of 2019 with new growth. The service gained 5 million subscribers between July and September and reached the 113 million mark on Spotify Premium.
The company states that the performance is mainly explained by a good performance of the plans for students and families. The acceleration for the second quarter in the pace of growth in Latin America also contributed to the result.
Between July and September, Spotify’s revenue grew 28% over the same period in 2018 and stood at € 1.73 billion (about R $ 7.66 billion). Subscriptions brought € 1.56 billion (R $ 6.91 billion) and ads in free versions, € 170 million (R $ 752 million).
After recording a loss of € 76 million in the second quarter, the company recorded a profit of € 54 million (R $ 239 million). The result was also better than the € 3 million loss for the third quarter of 2018
In a statement, Spotify highlighted the fact of maintaining the position in relation to its competitors. “Regarding Apple, publicly available data shows that we are adding approximately twice as many subscribers per month as they do.”
“Elsewhere, our estimates suggest that we continue to add more users on an absolute basis than Amazon,” he says. Spotify also indicated that Amazon’s streaming service is largely made up of users of the version with ads, not subscribers.
Podcasts have “exponential growth”
Spotify, which brings together 500,000 podcasts, reports that the audience for these productions has grown “exponentially”. It rose 39% compared to the second quarter. From July to September, 14% of users, or 35 million people, listened to at least one podcast on the platform.
This is a fact that can point to growth in the number of subscribers. That’s because, according to Spotify, people who start using the service on account of podcasts are more likely to adopt a paid account.
If the free plan is taken into account, Spotify went from 232 million to 248 million monthly active users. For the fourth quarter of 2019, the company expects to reach between 255 million and 270 million users.
This projection forecasts growth to between 120 million and 125 million subscribers. If the estimate is successful, Spotify’s revenue between October and December should be between € 1.74 billion and € 1.94 billion. The company, however, expects a loss of between € 31 million and € 131 million for the period.