Spotify Music Posts First Annual Profit, Stocks Rally

(%)
MARKETS TREND

Spotify announced its first full year of profitability on Tuesday, with net income of 1.14 billion euros after the fiscal year. 

This resulted in a double-digit gain in the stock price on Tuesday. The gross profit of the Luxembourg-based company rose 40% year over year and 10% over the prior quarter. Operating income was somewhat below expectations at 477 million euros.

The music streaming service stated it paid record $10 billion in royalties to the music industry in 2024, after the announcement in January of the streamer’s new multi-year publishing agreement with Universal Music Group.

The deal will involve additional paid subscription tiers,  music bundles and non-music content, and direct licensing between the two companies for Spotify in the US and several other countries.

Year-over-year growth was facilitated by the annual December listening analysis, which made Spotify Wrapped one of the year’s biggest drivers of user engagement.

The net growth of MAUs of 35 million was a fourth-quarter record.

MAUs were up 12% for the year and 5% from the previous quarter. Spotify’s fourth-quarter net income of 367 million euros an improvement over the past quarter, was significantly higher than the company’s net loss of 70 million euros, or 36 cents per share, from the same quarter last year. Revenue for the fourth quarter was 4.24 billion euros, significantly more than the 3.67 billion euros earned in the same quarter in 2023.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Top
FX
Crypto
Commodities
Indices
Start Trading

82% of retail CFD accounts lose money.