The music streaming market leader Spotify comes with solid growth through the corona crisis – but higher tax payments in Sweden caused a loss of 356 million euros in the last quarter.
The taxes were due because the shares of employees have increased significantly in value after the recent price increase. The burden of this was 126 million euros higher than expected, as Spotify announced on Wednesday. Around 31 percent of Spotify employees work in Sweden.
The number of subscription customers rose from 130 to 138 million from April to June – and was thus at the upper end of Spotify’s own expectations. Including the free version, Spotify recently had 299 million active users. Quarterly sales rose 13 percent year over year to EUR 1.89 billion. The advertising revenue from the free version fell by a good fifth compared to the previous year to 131 million euros.
A year ago, the Swedish company still managed to make a bottom line profit of one million euros. The streaming provider’s podcast offensive is now bearing fruit. Most recently, 21 percent of users listened to podcasts. Among other things, Spotify had concluded exclusive deals with popular podcast authors.
At the end of the year, Spotify still expects up to 153 million subscription customers and up to 348 million users in total.