Spotify subscriber numbers grow, Q2 revenues up 23%

Streaming giant Spotify beat expectations for total and paid subscriber growth in the three months ended 30 June, resulting in an almost 25% increase in revenues.

Spotify said premium subscribers grew 14% to 188.0m, a net gain of 6.0m and 1.0m above guidance despite a loss of about 600,000 subscribers in Russia.

Total monthly active users grew 19% to 433.0m, an adjusted net gain of 19.0m in the second quarter and 5.0m above guidance amid reactivations in Europe, as well as "Gen Z strength in Latin America".

Total revenues came to €2.86bn, up 23% year-on-year, but Spotify said net losses widened to €125.0m for the quarter, versus a net loss of €20.0m the same time a year earlier.

"While we continue to monitor the uncertain macroenvironment, we are very pleased with the resilience of the business, particularly our strength in MAUs and subscribers," Spotify said.

Ad-supported revenue jumped 31% to €360.0m, an all-time high as a percentage of total revenue at 13%, while subscription revenues increased 22% to €2.50bn, with average revenues per subscriber increasing 6% year-on-year to €4.54.

As of 1340 BST, Spotify shares were up 7.48% in pre-market trading at $111.75 each.

Reporting by Iain Gilbert at Sharecast.com