Spotify has increased the number of users and subscribers compared to last year, despite the loss of Russian users earlier this year and the pressures of the economic crisis around the world.
Spotify buys another company
Growth in the number of users exceeds expectations
Spotify announced its financial results for the second quarter of 2022 on Wednesday. The music streaming service reached 433 million monthly active users as of the end of June. By the end of March, the platform had 422 million active users. The company recorded its biggest second-quarter growth ever, thanks to Gen Z in Latin America and users re-activating their accounts in Europe.
Number of Spotify Premium members
Spotify lost 600,000 subscribers after severing ties with Russia in April. The company’s CEO, Daniel Ek, estimated that they would reach 187 million premium (paid) subscribers by June. According to the second quarter results, Spotify has 188 million premium subscribers.
Increase in ad revenue
The streaming service, which offers users the option to listen to free and premium quality music, also increased its advertising revenues. Spotify’s quarterly ad revenue rose 31% to $365 million. Ads make up 13% of the company’s total revenue. Ad growth drove Q2 revenue earnings 23% to $2.9 billion. Spotify also increased its revenue through podcast broadcasts.
Millions of dollars in damage!
Spotify reported an operating loss of $197 million in three months, a net loss of $127 million.
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