Shulou(Shulou.com)11/24 Report--

CTOnews.com, October 24 (Xinhua)-- Spotify reported third quarter 2023 results with operating revenue of 32 million euros (CTOnews.com Note: currently about 249 million yuan), the first quarterly profit since 2021, thanks to higher gross margins and lower marketing and personnel costs.

Spotify's monthly active users grew 26 per cent to 574 million; the number of subscribers rose 16 per cent year-on-year to 226 million, a net increase of 6 million; total revenue rose 11 per cent to 3.4 billion euros, with a gross profit margin of 26.4 per cent.

"Advertising-backed revenues are up 16 per cent year-on-year (24 per cent at fixed exchange rates), reflecting double-digit year-on-year growth in all regions," said Spotify.

"driven by sales impression growth and stable pricing, music advertising revenue accelerated again, growing by nearly 20 per cent year-on-year. Podcast advertising revenue growth remained within a healthy double-digit range, thanks to a year-on-year increase in the number of original and licensed podcasts and Spotify Audience Network sales presentations, which was partially offset by weak pricing."

It is understood that Spotify has kept a tight grip on costs after spending more than 1 billion euros to set up a podcast business, firing 6 per cent of its staff earlier this year and raising prices for advanced programs in several countries in July.

Spotify aims to reach 1 billion users and $100 billion in annual revenue by 2030, and is expected to reach 235 million paying users and 3.7 billion euros in revenue in the last three months of this year.

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