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Spotify has announced a significant surge in its subscriber base, defying expectations despite implementing price increases across the UK and several of its major global markets.
The music streaming giant reported a better-than-anticipated 12 per cent increase in monthly active users, reaching 761 million during the first three months of the year. Simultaneously, paying subscribers climbed by 9 per cent to 293 million.
These gains occurred despite recent price adjustments, which saw UK premium subscriptions rise by 8.3 per cent, or £1, to £12.99 per month from November.
Family plans also increased by £2 to £21.99 monthly. Customers in the US faced an 8 per cent price hike, with monthly costs rising to $13 (£9.64) from January.
The Swedish company's latest update revealed total revenue soared by 14 per cent to €4.5 billion (£3.9 billion) in the first quarter.
Operating income hit a record €715 million (£620.1 million), a substantial increase from €509 million (£441.4 million) recorded a year prior.
open image in gallery Spotify has announced a jump in in subscriber numbers (Alamy/PA) ( Local Library )
Alex Norstrom, co-chief executive of Spotify, said: “Since the global rollout of our more personalised free experience, users in key markets like the US are listening and watching more days per month.
“All that reinforces our confidence in sustained user and subscriber growth, low churn, and continued progress on revenue and margin.”
Gustav Soderstrom, co-chief executive, said: “We’re well positioned because of our large, engaged user base, deep creator relationships, and years of investment in personalisation and infrastructure at scale.”
He added: “We see significant room to grow across users, formats and engagement and to expand what Spotify is and can become over time.”
The chief executives took on joint leadership of the firm in January.
open image in gallery Its update showed total revenue rose 14 per cent to 4.5 billion euros (£3.9 billion) in the first quarter, while operating income reached a record 715 million euros (£620.1 million), up from 509 million euros (£441.4 million) a year earlier ( Reuters )
Spotify said it was on track for further growth in monthly active users in the second quarter, to 761 million, while sales are to grow to 4.8 billion euros (£4.16 billion).
But it is forecasting operating income to drop month on month to 630 million euros (£546.4 million), which is lower than expected by most analysts.