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Spotify added 5 million paying subscribers in the first three months of the year, even if the director general Daniel Ek warned against the “short -term noise” around the prices of US President Donald Trump.
The musical broadcasting group reached 268 million paying subscribers during the quarter ending on March 31, superior to Spotify's advice for 265 million. Performance has been the growth of the strongest subscribers in the first quarter of Spotify since 2020.
“The short term can bring noise, but we remain confident in long -term history,” said EK, adding that the free version of Spotify will offer listeners “the flexibility to stay with us even when things are more uncertain”.
But the actions of the company fell almost 8% in pre-commercial trade on Tuesday, while investors digested its forecasts for the year. Spotify said he expects monthly active users of 689mn in the second quarter, below the 693mn that analysts had planned, according to Visible Alpha.
Spotify's actions have more than doubled in the past year, while Wall Street has rewarded the group for a cost reduction thrust that led to its very first full -time benefit in 2024.
Musical diffusion services are not affected by Trump's prices, and analysts say that Spotify is relatively protected by an economic slowdown. The group achieved 225 million euros in net income on 4.2 billion euros in income during the quarter.
In the United States, Spotify costs $ 12 per month, compared to $ 10 per month when the streamer was launched in the country over ten years ago. Spotify is preparing to increase prices in dozens of countries across Europe and Latin America this summer, the Financial Times reported Last week.
TD Cowen analyst Doug Creutz said Spotify still offered good value for consumers compared to “other entertainment options” and would be “unlikely to see significant increases (cancellations) even if the economy is recession”.
“People also have important emotional ties with music that becomes more important during stressful periods,” added Creutz.
However, analysts expect a recession to lower Spotify's advertising revenues, which represents around 10% of the total. Advertising revenues from the first quarter of Spotify climbed 8% compared to a year ago to 419 million euros.
