Music streaming giant Spotify nears 300 million active users

Spotify said on Wednesday it had for the first time come close to 300 million active users in the second quarter, including more than 45% paying subscribers, even though the Swedish company has deepened its losses.

Music streaming giant Spotify said on Wednesday it had first brushed against 300 million active users in the second quarter, including more than 45% paying subscribers, even though the Swedish company widened its losses . Spotify, which explains that it was generally spared the negative effects of the Covid-19 pandemic, achieved during the quarter a turnover of 1.89 billion euros, up 13% over one year and of 2% from the first quarter, according to its financial report.

Twice as many paid subscribers as Apple and Amazon

The number of active users reached 299 million (+ 29% year on year) at the end of June. Main source of income, paying subscribers, who have access to the musical repertoire without having to listen to advertising, are now 138 million (+ 27%), more than twice as many as its competitors Apple Music and Amazon Music .

After a rare shift in the green in the first quarter, however, activity remains in deficit. Spotify suffered a loss of 356 million euros in the second quarter, almost five times more than in the second quarter of 2019. Led by its Swedish founder Daniel Ek, Spotify explains its loss by “the impact of charges related to the increase of our stock market price “. The former Stockholm-based start-up, now listed in New York, had to spend nearly 300 million euros in financial costs, against 64 million a year ago.

The company relies on the podcast

Since the beginning of April, the stock has more than doubled and is currently trading at around $ 260 per share, more than $ 100 above its introductory price in April 2018.

“During the past quarter we noted a modest impact. on hourly consumption due to Covid-19. As of June 30, overall consumption has returned to pre-Covid levels “, explains Spotify. All regions have returned to the green, except South America. Rare European “unicorn”, the company is currently relying heavily on the podcast , where it is increasing investments into hundreds of millions of dollars, even if the share in its turnover remains minimal for the moment.