Spotify Technology SA reported better-than-expected revenue growth in the first quarter on Monday, as the streaming music company hit 100 million paid subscribers to its additional services, sending its shares up nearly 5 percent.
A world leader in the sector, with twice the number of subscribers of its nearest competitor Apple Music, Spotify launched in regions such as India, the Middle East and North Africa in recent months, trying to feed the next stage of its development as it continues to aggressively price in the developed world.
Spotify said it had 217 million monthly active users (Maus) in March, compared with 173 million in the same quarter a year earlier. Analysts on average expected the company has 218.6 million subscribers, according to research firm FactSet.
Premium subscribers or pay at the end of the quarter were 100 million compared to 75 million a year earlier. Analysts had expected the company has 99 million paying subscribers.
Revenue rose by 33 per cent to 1510 million € (R21bn), exceeding expectations from € 1.47bn, according to IBES Refinitiv.
Europe contributed 40 percent of the total number of contract customers, and then in North America 30 per cent.
Spotify said it expects to have about 107 million to 110 million subscribers Premium until the end of the current quarter.
Spotify also expects total revenue of € 1.51bn to € 1.71bn for the second quarter. Analysts had expected the forecast € 1.62bn.
The company reported a loss attributable to shareholders of € 0.79 per share. Analysts expected a loss of € 0.35 per share.