Spotify posts first ever operating profit

  • News Digest

Feb 11, 2019-

Spotify posted its first ever quarterly operating profit on Wednesday driven by a strong gross margin and slower-than-expected headcount growth, but it warned of a loss in 2019 and issued modest forecasts which disappointed investors. The world’s most popular paid music streaming service, which has said it prioritises growth over profitability, posted fourth-quarter sales in line with expectations and said it had seen growth in most of its markets. Despite surprising with its swing to profit, Spotify’s shares fell 4 percent in early trade. The company, which had a gross profit margin of 26.7 percent in the fourth quarter, said it expected this to deteriorate to 22.5-24.5 in the first quarter and to 22-25 percent in 2019, compared with analysts’ forecast of 26 percent. (REUTERS)

Published: 11-02-2019 12:44

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