“Never been in a stronger position”

TECH

The music streaming service Spotify reports revenue in line with expectations during the third quarter.

The operating result was better than expected. The stock rose 6.9 percent in aftermarket trading in the US and has more than doubled this year.

– We have never been in a stronger position and that is thanks to an outstanding effort from our team, founder and CEO Daniel Ek states in the report.

Turnover rose 18.8 percent to 3.99 billion euros (3.36). The outcome can be compared with the Factset analyst consensus which was 4.03.

Operating profit was 454 billion euros (32), expected operating profit was 392. The operating margin was 11,378.4 percent (952.4).

Earnings per share amounted to 1.45 euros (0.33), which is 14.2 percent worse than the analyst consensus of 1.69.

Monthly active users increased by 11 percent compared to the previous year and amounted to 640 million. The number of premium users increased 12 percent to 252 million, which was higher than expected.

– We have reached where we aimed – if not a little further – and are on a steady path towards our long-term goals. This relentless pursuit of innovation combined with our focus on growth allows us to deliver the best user experience in the industry, while strengthening the core values ​​that make Spotify unique. I’m really looking forward to everything we have ahead of us, comments Daniel Ek.

In the fourth quarter, Spotify expects a turnover of 4.1 billion euros and an operating profit of 481 million euros. Expected according to Factset is a turnover of 4.23 billion euros and an operating profit of 446 million euros.

The guidance for the number of MAUs is 665 million during the quarter, expected 661 million. The number of premium users is expected to end up at 260 million, roughly in line with the estimate.