Spotify Reported 20% Increase in Paid Premium Subscribers

Spotify Technology SA beat Wall Street estimates for second-quarter revenue on Wednesday, as the music streaming company reported a 20% jump in paid subscribers for its premium service driven by demand in Europe and North America.

Spotify launched in 85 countries earlier this year, taking its footprint to 180 countries and exposing it to the effects of COVID-19 across the world.

The company has 2.9 million podcasts on its platform and the podcast share of overall consumption hours reached an all-time high in the quarter.

Its podcasts by personalities, such as Joe Rogan and Bill Simmons, continue to draw more users.

“Some markets are now almost back to normal… some of them are still very hard hit by COVID,” CEO Daniel Ek said in an interview.

Its advertisement business, which last year took a hit from the pandemic, however bounced back to grow 110% to 275 million euros ($324.64 million).

The top end of the company’s current quarter forecast for revenue and premium subscribers also surpassed expectations.

Reuters

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