(Stockholm) Swedish streaming giant Spotify turned green in the first quarter with an operating profit of 168 million euros, compared to a loss of 156 million euros a year earlier, it announced Tuesday.
Paying subscribers increased slightly to 239 million, up 1% compared to the end of December (236 million users) and in line with its forecasts, according to the group’s quarterly report.
It records 615 million active users, slightly lower than its forecast of 618 million.
“The company recorded good results in the first quarter, thanks to an increase in the number of subscribers, improved monetization and record profitability,” said Spotify.
To reduce its costs, the audio platform announced at the beginning of December a third wave of reduction in its workforce, by 17%, or around 1,500 people.
Operating profit was slightly lower than its forecast of 180 million euros.
The group explains that it spent 82 million euros in social charges linked to the rise in Spotify shares. The platform pays bonuses in the form of shares. These expenses “were more than offset by lower personnel costs,” he adds.
“Overall, we are encouraged by the strong start to the year and believe the company is well positioned to achieve the goals set out at our 2022 Investor Day,” Spotify said in its report.
The platform, listed on the New York Stock Exchange, has continued to invest since its launch in 2006, first to fuel its growth by establishing itself in new markets and then by offering exclusive content, such as podcasts. , in which it has invested more than a billion dollars.
Since its creation 18 years ago, the platform has never posted a net profit over an entire year and only occasionally makes quarterly profits, despite its success in the online music market.