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HomeLatest NewsSpotify shoots its losses up to 430 million in full staff adjustment

Spotify shoots its losses up to 430 million in full staff adjustment

Date: March 29, 2024 Time: 19:48:27

The production and distribution company for streaming music and podcasts the previous year, as reported by the company and collected by Europa Press.

The company, which last week announced a workforce adjustment that will mean the departure of some 600 people, 6% of its staff, attributed this evolution to the reduction in margins and the increase in operating expenses due to the increase in the costs of staff and investment in advertising.

Spotify’s revenues for the year as a whole grew by 21.3%, reaching 11,727 million euros. At the same time, the costs associated with the income, derived to a large extent from the copyrights that

Spotify closed 2022 with 489 million monthly active users in the fourth quarter, 20% more than in the same period last year. Of that number, 205 million were ‘premium’ subscribers, 14% more, while another 295 million were free users, 25% more.

Spotify ensures that I surpass visions

In this way, the company exceeded its forecasts of closing the year with 479 million active monthly users, including 202 million premium users. Between October and December, the firm lost 270 million euros, compared to the negative result of 39 million in the fourth quarter of 2021, while its revenues increased by 17.7%, to 3,166 million euros.

Of this number, revenue generated by Spotify premium users rose 18% to 2.717 million, while revenue from advertising supported by free users increased 14% to 449 million.

“We finished 2022 strong despite a challenging year”

Spotify’s CEO, Daniel Ek, highlighted via Twitter that the fourth quarter of 2022 has brought “great growth for the platform”. “We finished 2022 strong despite a challenging year,” he said, at the same time assuring that the platform will work with “more intensity and effort.” “We will promote even greater efficiency in 2023”, he has sentenced.

Looking ahead to the first quarter of 2023, Spotify is confident of reaching 500 million active monthly users, including a target of 207 million premium users, with the expectation of reaching some 3.1 billion in revenue in the quarter and operating losses of 194 million of 194 .

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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