Spotify forecasts higher-than-expected profit: €660 million revenue expected in Q1
Kyiv • UNN
Spotify expects an operating profit of 660 million euros in the first quarter, exceeding analysts' forecasts. This is due to an increase in the number of users and price increases.
Streaming company Spotify forecasts an operating profit of 660 million euros in the first quarter, compared to analysts' average estimate of 652.3 million euros. Reuters writes about this, reports UNN.
Details
First-quarter earnings are projected to exceed Wall Street estimates as the Swedish streaming company benefits from significant user growth and price increases, which has led to its shares rising by almost 18%.
It is noted that while price increases in several markets and cost reductions contributed to profits in the December quarter, Spotify's revenue growth was the slowest since its market debut in 2018.
Spotify has launched a feature for suggestive playlists, invested in video podcasts, including through a deal with Netflix, and expanded its range beyond audiobooks.
According to data compiled by LSEG, the company forecasts an operating profit of 660 million euros in the first quarter, compared to analysts' average estimate of 652.3 million euros.
The quarterly revenue forecast of 4.5 billion euros was slightly lower than the estimate of 4.57 billion euros. Fourth-quarter revenue increased by 7% to 4.53 billion euros, which is in line with estimates.
Recall
Spotify appears to be working on a new feature that will allow audiobook listeners to pick up where they left off in a physical book.