Spotify: posts loss despite growth in user numbers
(CercleFinance.com) - Spotify on Thursday reported strong growth in user numbers, but also posted a wider operating loss for the second quarter, due to higher-than-expected social charges over the period.
The Luxembourg-based company said its monthly user base rose 29% year-on-year to 299 million in the three months to 30 June from the year before.
However, the company posted an operating loss of 167 million euros, from a loss of just 3 million euros a year ago, as operating expenses jumped by 48%, well above expectations.
The higher-than-planned social charges came from the rise of its share price, as salaries and benefits include share-based compensation, the music-streaming giant said in a statement.
Excluding the impact of these higher social charges, all of the key metrics would have finished at or ahead of the company's expectations, Spotify said, although this did not prevent the share from falling slightly (-0.4%) in early trading on Thursday in New York.
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