Spotify suffered a loss of € 101 million in the period from July to September 2020 due, in large part, to an increase in operating expenses.
The giant of music streaming, the Swedish Spotifyannounced Thursday that exceeded 300 million active users in the third quarter, of which 45% are made payments, despite a net loss recorded for the period.
The number of active users reached 320 million (+ 29% in one year) at the end of September.
Main source of income, paying subscribers are now 144 million (+ 27%). The group thus fulfills its goal announced in July, of reaching between 312 and 317 million users, of which between 140 and 144 million payments.
Resident pauses music to make movies and TV
Spotify, which is based in Stockholm but is listed on the New York Stock Exchange, expects to reach between 340 and 345 million users by the end of the year.
However, after a turnaround in Q3 2019, Spotify suffered a loss of € 101 million in the July-September 2020 period due, in large part, to increased operating expenses.
During the quarter, the group had a turnover of about 2 billion euros (2.35 billion dollars), an increase of 14% in one year, according to its financial report.
Regarding the operating result, where Spotify expected a loss of between 70 and 150 million, it was only 40 million euros (47 million dollars) during the period between July and September.
During the quarter, “global consumer hours exceeded pre-covid levels,” the group notes.
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