Spotify projected third-quarter profit below market expectations on Tuesday, citing increased tax expenses linked to employee compensation, despite strong demand for its premium subscription services.
Shares of the Swedish streaming platform dropped nearly 9% in early trading, even after gaining around 57% so far this year. Investors have been keeping a close watch on the company’s profitability following recent price hikes, cost-cutting measures, and rising subscriber numbers that helped Spotify report its first annual profit in 2024.
The company expects operating income of €485 million ($561 million) for the third quarter, falling short of the €562 million consensus estimate from LSEG data.
Spotify’s forecast of 710 million monthly active users (MAUs) aligns with expectations, while its premium subscriber projection of 281 million exceeds analysts’ estimates of 279 million. In the second quarter, premium subscribers rose 12% to 276 million, and total MAUs increased by 18 million to reach 696 million—both surpassing forecasts.
Despite a 10% year-over-year revenue increase to €4.19 billion ($4.85 billion) in Q2, the figure missed expectations of €4.26 billion. Spotify noted that currency fluctuations negatively impacted revenue growth by roughly 440 basis points.
Looking ahead, the company anticipates third-quarter revenue of €4.2 billion, which also falls below the market projection of €4.48 billion.
Meanwhile, Spotify’s board approved a $1 billion boost to its share buyback programme, increasing the total authorisation to $2 billion, with $1.9 billion available for repurchases through April 2026.
Rising competition from Apple and Amazon has led Spotify to ramp up marketing efforts, contributing to an 8% rise in operating expenses during the April–June period.
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The California Coastal Commission on Thursday voted against a proposal by Elon Musk’s SpaceX to almost double its permitted annual Falcon 9 rocket launches from Vandenberg Space Force Base, raising the limit from 50 to 95.
U.S. President Donald Trump said he would not negotiate on Ukraine’s behalf during his meeting with Russian President Vladimir Putin on Friday, stressing that Kyiv must decide whether to pursue any territorial swaps with Moscow.
Donald Trump travelled to Alaska on Friday for what he described as a “high-stakes” summit with Russian president Vladimir Putin, aimed at securing a ceasefire in Ukraine and ending the deadliest conflict in Europe since the Second World War.
The world’s biggest dance music festival faces an unexpected setback as a fire destroys its main stage, prompting a last-minute response from organisers determined to keep the party alive in Boom, Belgium.
A powerful eruption at Japan’s Shinmoedake volcano sent an ash plume more than 3,000 metres high on Sunday morning, prompting safety warnings from authorities.
According to the German Research Centre for Geosciences (GFZ), a magnitude 5.7 earthquake struck the Oaxaca region of Mexico on Saturday.
A resumption of Iraq’s Kurdish oil exports is not expected in the near term, sources familiar with the matter said on Friday, despite an announcement by Iraq’s federal government a day earlier stating that shipments would resume immediately.
A magnitude 5.2 earthquake struck 56 kilometres east of Gorgan in northern Iran early Sunday morning, according to preliminary seismic data.
The Trump administration is expected to shed roughly 300,000 federal workers in 2025, Office of Personnel Management (OPM) Director Scott Kupor said Thursday.
The European Bank for Reconstruction and Development (EBRD) has provided a €500 million loan (almost $590 million) to the national gas company Naftogaz (NAK) for emergency gas purchases for Ukraine.
Bitcoin surged to a new all-time high as expectations grow for U.S. interest rate cuts and regulatory moves favouring crypto investment, boosting investor confidence in the sector.
The U.S. budget deficit surged nearly 20% in July to $291 billion despite a significant increase in customs duty collections from President Donald Trump’s tariffs, as government spending outpaced revenue growth.
The National Carrier of Türkiye, Turkish Airlines has announced an increase in the number of its weekly flights to China.
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