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Feb 10 (Reuters) – Spotify forecast first-quarter earnings above Wall Street estimates on Tuesday, as the Swedish audio-streaming giant attracts new users even \u200bafter price hikes.<\/p>\n
The results are the first since co-CEOs Gustav Soderstrom \u200cand Alex Norstrom took the reins from founder Daniel Ek, who became executive chairman in January.<\/p>\n
While \u200cprice increases in several markets and cost cuts powered profits in the December quarter, the company’s revenue growth hit the slowest since its 2018 market listing.<\/p>\n
Spotify has rolled out an AI-powered playlist that can be generated with a simple prompt, invested \u2060in video podcasts including \u200cthrough a Netflix<\/a> deal and expanded beyond audiobooks with physical books to ward off competition from Apple<\/a> and Amazon’s streaming services.<\/p>\n The \u200dcompany forecast operating income of 660 million euros ($786.13 million) in the first quarter, compared with analysts’ average estimate of 652.3 million euros, according to data compiled by LSEG.<\/p>\n Its quarterly \u200brevenue forecast of 4.5 billion euros was slightly below the estimate of \u200c4.57 billion euros. Fourth-quarter revenue rose 7% to 4.53 billion euros, in line with estimates.<\/p>\n Spotify raised the price of its monthly premium subscription plan by $1 to $12.99 in the U.S., Estonia and Latvia markets this year, following a similar move in more than 150 markets in 2025.<\/p>\n Its quarterly outlook for 759 million \u2060monthly active users was above an estimate of \u200b753 million, while its prediction for a 3 \u200bmillion increase in premium subscribers to 293 million was below estimates.<\/p>\n Premium subscribers grew 10% to 290 million in the fourth quarter, \u200dversus an estimate of \u2060290.9 million. Its MAU net additions of 38 million brought the total to 751 million and exceeded expectations.<\/p>\n Gross profit jumped 10% from a \u2060year earlier, thanks to a 10% decline in operating expenses. Gross profit margin increased to 33.1% \u200cfrom 31.6% in the prior quarter.<\/p>\n ($1 = 0.8396 euros)<\/p>\n (Reporting by Jaspreet \u200cSingh in Bengaluru; Editing by Pooja Desai)<\/p>\n<\/p><\/div>\n