Spotify grows to 170 mln users in Q1, revenues up 26%

Sony sells half its Spotify stock, reportedly worth US$750 million

Sony sells half its Spotify stock, reportedly worth US$750 million

Music streaming company Spotify has made put out an array of new metrics with its first earnings report as a publicly-trading entity and it has shareholders reacting negatively and strongly so. Spotify opened at $165.90 a share on its first day of trading and ended trading Wednesday at about $170.

"Based in Dubai, you'll work cross-functionally with teams such as Artist & Label Services, Shows & Editorial, Licensing and technical teams within Spotify to ensure long-term success in this region and contribute to providing the best user experience possible", reads the job description.

According to Variety, Spotify plans to have 100 million paid subscribers by the end of 2018 and 200 million active users. Spotify predicted it will end the period with 79 million to 83 million subscribers.

As for premium subscribers, 40 percent hail from Europe, 31 percent from North America, 20 percent are from Latin America and 9 percent are from the rest of the world.

The company said it had 170 million Monthly Active Users ("MAU") and 75 million premium subscribers.

The company, valued at $30 billion, reported an operating loss of $49 million last quarter on sales of $1.36bn.

The losses were down from 139 million euros (RM 655,240,335.75) in the same quarter a year earlier and figured within the company's expectations.

The result allows Spotify to remain ahead of rival Apple Music, who boasts ~40 million paid subscribers. That's compared to Wall Street's estimates of $1.4 billion in revenue and an adjusted EPS loss of $0.34. Now that the music streamer has gone public and the music companies are selling their shares, it is time to share some of those profits with their artists and labels.

But the competition could make it more hard for Spotify to make money, which has proved to be a challenge since its music service launched a decade ago.

Spotify, the streaming music service, has released its first earnings report.

Investors sold the stock on the news. With no guidance, then, investors are making their own conclusions about Spotify's numbers.

Spotify's gross margin was above its guidance range at 24.9 percent in Q1, topping its expectations of 23-24 percent. TME is controlled by internet giant Tencent and also holds a stake in Spotify. Excluding forex effects, revenues were up 37 percent, Spotify said.

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