The streaming provider Spotify gained more users than expected in the second quarter. But the marketing measures for more growth also pushed the company deeper into the red.
Spotify increased its user base to 551 million in the second quarter, beating expectations. Analysts had expected 526.8 million. Marketing measures had mobilized more listeners in Europe, Latin America and Asia.
However, the company missed expectations of $3.21 billion, with revenue increasing from $2.8 billion to $3.18 billion. The loss increased in the past quarter from 125 to 302 million US dollars.
Goal 2030: One billion users
Spotify announced last year that it aims to have 1 billion users and $100 billion in annual revenue by 2030.
The stock was up nearly 4 percent in premarket trading. In view of the sales development, the course turned and lost six percent before the market. In the current year, however, the price has already more than doubled.
price increases in numerous countries
At the beginning of the week, Spotify announced that it would increase the prices for single subscriptions in more than 50 markets. These include the US, Canada, France and the UK. In Germany, the single subscription still costs 9.99 euros, a subscription for two people 12.99 euros and families of up to six people pay 14.99 euros.
Streaming is cheapest for students: you pay 4.99 euros in Germany – but for a maximum of one year. Amazon and Apple had already raised the prices for music streaming subscriptions last year.