After closing in the second quarter, Spotify has released its quarterly results and continues to see significant growth in user numbers – both in paid subscriptions and in users of the free version of the music streaming service.
Monthly active users increased 29 percent from $ 180 million to $ 232 million compared to the second quarter of 2018. Of these, 108 million users have a paid subscription. An increase of 31 percent year-on-year, as at the end of the second quarter of 2018 Spotify still had 83 million paying subscribers.
Apple comes to 60 million subscribers
Within a quarter, Spotify has gained about 8 million new subscribers, which is slightly below the expected 8.5 million new subscribers. At the end of March, Spotify had 217 million active users with 100 million subscribers. However, the 108 million “paying” customers include those who use the free 30-day trial membership. Even Apple counts in the user numbers of Apple Music users of the 3-month trial membership and came so at the end of June to 60 million subscribers. By the end of 2019 Spotify wants to increase the number of subscribers to up to 125 million.
With a share of 36 percent, most users come from Europe, followed by North America with 28 percent and Latin America with 21 percent. The proportion of paying users is even higher at 40 percent for Europe.
Revenue per user declined
The average revenue per user also declined slightly compared to the first quarter with one percent and is now at 4.86 euros. Spotify expects that average revenue per user will continue to decline slightly as the year progresses, with this drop in the low single-digit percentage range.
Turnover increases overall, loss is reduced
However, as user numbers increased, total revenue also increased 31 percent year-on-year and now stands at 1.67 billion euros. The share of nicknames by the ad-supported, free version of Spotify is just over 10 percent. The loss for the quarter was € 76 million, compared to € 142 million in the first quarter of 2019.
Nothing new to the antitrust case against Apple
However, the company did not announce any news regarding the antitrust complaint filed by Apple against Spotify.