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.
Follow the latest developments and global reaction after the U.S. and Israel launched “major combat operations” in Iran, prompting reta...
A number of senior Iranian figures have reportedly been killed in Saturday’s joint U.S.–Israel...
Afghanistan said it had fired at Pakistani aircraft over Kabul after explosions and gunfire rocked the capital ...
The death of Iran’s Supreme Leader...
Ayatollah Ali Khamenei, Iran’s supreme leader for 36 years and the country’s highest political and religious authority, has died aged 8...
A number of senior Iranian figures have reportedly been killed in Saturday’s joint U.S.–Israeli airstrikes on Iran, according to Iranian state media, Israeli military statements and international reporting. Some of the details remain unverified.
The death of Iran’s Supreme Leader Ayatollah Ali Khamenei has triggered one of the most significant political processes in the Islamic Republic: the selection of a new Supreme Leader.
Following the U.S.-Israel strikes, Iran has called for an urgent meeting of the United Nations Security Council to be held on Monday (2 March), and vowed strong retaliation to the attacks. Touraj Shiralilou sent this update from Tehran.
Tensions between the U.S. and Iran are escalating, with Washington ordering a significant military build-up in the region and multiple countries evacuating diplomatic staff amid fears of further instability.
Follow the latest developments and global reaction after the U.S. and Israel launched “major combat operations” in Iran, prompting retaliation from Tehran.
Tensions between the U.S. and Iran are escalating, with Washington ordering a significant military build-up in the region and multiple countries evacuating diplomatic staff amid fears of further instability.
Two people were killed and around 40 injured when a tram derailed in central Milan on Friday (27 February), a spokesperson for the local fire service said.
Governments across the region responded swiftly to Israel’s strikes on Iran, closing airspace, issuing travel advisories and activating contingency plans amid fears of escalation.
Pakistani air strikes hit a weapons depot on the western outskirts of Kabul overnight, triggering hours of secondary explosions that rattled homes across the Afghan capital and left residents fearing further violence.
Paramount Skydance emerged as the winner in a months-long battle to acquire Warner Bros Discovery after streaming giant Netflix on Thursday refused to raise its bid for the storied Hollywood studio.
Global debt surged to a record $348.3 trillion at the end of 2025, after nearly $29 trillion was added over the year, marking the fastest annual increase since the pandemic, according to the Institute of International Finance (IIF) report released on Wednesday.
Millions of Colombian roses have arrived in the United States just in time for Valentine’s Day, keeping the country on track as the world’s second-largest flower exporter. Between 15 January and 9 February, Colombia shipped roughly 65,000 tons of fresh-cut blooms.
Russia’s car market is continuing to receive tens of thousands of foreign-brand vehicles via China despite sanctions imposed after Moscow’s full-scale invasion of Ukraine in 2022, a journalistic investigation has found.
Türkiye’s national energy company, TPAO, has struck a new cooperation deal with U.S. energy giant Chevron, signing a memorandum of understanding to explore joint oil and gas exploration and production opportunities, the Turkish Energy and Natural Resources Ministry announced on Thursday.
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