Spotify has announced a jump in the number of subscribers despite hiking prices in some of its biggest markets worldwide.
The music streaming group reported a higher-than-expected 12 per cent rise in monthly active users, to 761 million in the first three months of the year, and a nine per cent rise in paying subscribers to 293 million.
This came despite the group pushing through recent price increases, with Irish premium subscriptions rising 8.3 per cent or €1 to €12.99 a month – €155.88 per year – as of November, while family plans increased by €2 to €22.99 a month.
The Swedish group also raised prices for US customers by eight per cent to 13 US dollars a month from January.
Its update showed total revenue rose 14 per cent to €4.5 billion in the first quarter, while operating income reached a record €715 million, up from €509 million a year earlier.
Alex Norstrom, co-chief executive of Spotify, said: “Since the global rollout of our more personalised free experience, users in key markets like the US are listening and watching more days per month.
“All that reinforces our confidence in sustained user and subscriber growth, low churn, and continued progress on revenue and margin.”
Gustav Soderstrom, co-chief executive, said: “We’re well positioned because of our large, engaged user base, deep creator relationships, and years of investment in personalisation and infrastructure at scale.”
He added: “We see significant room to grow across users, formats and engagement and to expand what Spotify is and can become over time.”
The chief executives took on joint leadership of the firm in January.
Spotify said it was on track for further growth in monthly active users in the second quarter, to 761 million, while sales are to grow to €4.8 billion.
But it is forecasting operating income to drop month on month to €630 million, which is lower than expected by most analysts.
