Spotify surpasses 200 million subscribers, but magnifies losses

mock, The global leader in audio platforms surpassed analyst expectations, reaching 205 million paying subscribers by the end of 2022. However, the company announced on Tuesday that it had increased its losses.

The Swedish group, which recently announced its plan to lay off about 6% of its workforce, reported a net loss of €430 million last year, which is much larger than the €34 million in 2021, about $465 million. that is, $37 million.

According to Factset, analysts predicted an average loss of 441 million euros or $480 million for 2022. Annual sales also exceeded expectations at EUR 11.7 billion, 21% higher than the previous year.

The group said that the number of paid subscribers of the world’s largest voice platform provider grew 14% annually to 205 million, driven by good growth in all regions, especially in Latin America. Analysts had estimated about 202 million subscribers.

According to Spotify, the total number of users, including the free version, has reached 489 million and is expected to exceed 500 million by 2023.

The Stockholm-based but New York-listed platform has had several profitable periods.

However, despite its explosive subscriber growth and ahead of its rivals Apple Music or Amazon Music, it has been posting regular losses for years.

Owner and co-founder Daniel Ek, 39, announced last week that it will lay off nearly 600 of its roughly 10,000 employees, in line with other tech giants.

Source: AFP.

Source: Ultimahora

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