Spotify revealed that the digital service provider finished 2018 with 96 million paying subscribers, a 25 million increase year-over-year. In 2018’s fourth quarter, Spotify added 9 million subscribers. The company reported it expects to finish the first quarter of 2019 with an estimate of between 97 million and 100 million subscribers globally, with an estimate of 117 million to 127 million by the end of the year. The company estimated it will end 2019 with a monthly active user tally of between 245 million to 265 million.
The company also revealed it made its first operational profit since launching in Sweden in 2008, revealing a profit of 94 million euros ($107 million) in the fourth quarter of 2018, driven by lower operating costs, which declined by 17 percent year over year.
The company’s gross profit margin was 26.7 percent in the 2018 Q4, though this is expected to erode to somewhere between 22.5-24.5 during the first quarter of 2019. The company posted a net profit of 442 million euros during the final quarter of 2018.
As reported earlier, Spotify has also acquired podcast companies Gimlet and Anchor, believing 20 percent of all listening on Spotify will eventually involve something other than music.
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Jessica Nicholson serves as the Managing Editor for MusicRow magazine. Her previous music journalism experience includes work with Country Weekly magazine and Contemporary Christian Music (CCM) magazine. She holds a BBA degree in Music Business and Marketing from Belmont University. She welcomes your feedback at jnicholson@musicrow.com.View Author Profile
