- Two months on, Donbas soldiers begin to question Kursk offensive
- Rugby Australia to counter-sue in dispute with Melbourne Rebels
- Mumbai mourns Indian industrialist Ratan Tata
- Philippines challenges China over South China Sea at ASEAN meet
- Mets advance on Lindor blast, Dodgers stay alive in MLB playoffs
- Injury-ravaged Krygios aiming to return at Australian Open
- Greek international Baldock, dead at 31: family
- EU talks deportation hubs to stem migration
- Deaths and repression sideline Suu Kyi's party ahead of Myanmar vote
- S. Africa offers a lesson on how not to shut down a coal plant
- China opens $71 bn 'swap facility' to boost markets
- Mets advance on Lindor grand slam, Yankees and Tigers win
- Taiwan President Lai vows to 'resist annexation' of island
- China's solar goes from supremacy to oversupply
- Asian markets track Wall St record as Hong Kong, Shanghai stabilise
- 'Denying my potential': women at Japan's top university call out gender imbalance
- China's central bank says opens up $70.6 bn in liquidity to boost market
- Zelensky on whirlwind tour of Europe ahead of US vote
- Youth facing unprecedented wave of violence, UN envoy warns
- 'A casino in every kitchen': Brazil's online gambling craze
- Nobel chemistry winner sees engineered proteins solving tough problems
- Lindor powers Mets past Phillies into NL Championship Series
- Wildlife populations plunge 73% since 1970: WWF
- 'Sleeper agent' bots on X fuel US election misinformation, study says
- Death toll rises to 109 after Haiti gang attack, official says
- Tigers beat Guardians and on brink of advancing in MLB playoffs
- Argentina MPs back Milei's veto of university funding
- Man City sink Barca in Women's Champions League as Bayern outgun Arsenal
- Greek international Baldock, 31, found dead in pool: state agency
- Florida seaside haven a ghost town as hurricane nears
- Pharrell Williams to co-chair Met Gala exploring Black dandyism
- Wall Street indices hit fresh records as Chinese shares tumble
- Taiwan's president to deliver key speech for National Day
- Sea row on the menu as ASEAN leaders meet China's Li
- Injured Kane won't start England's Nations League clash with Greece
- Discord seen as online home for renegades
- US forecasts severe solar storm starting Thursday
- Mozambique starts tallying votes in tense election
- Zelensky moves to court European leaders in drive for military aid
- Ratan Tata: Indian mogul who built a global powerhouse
- Rodgers rejects 'false' suggestions of role in Saleh dismissal
- One dead as storm Kirk tears through Spain, Portugal, France
- Indian business titan Ratan Tata dead at 86
- Lebanon facing 'catastrophic' situation as 600,000 displaced: UN
- US warns Israel not to repeat Gaza destruction in Lebanon
- Musk's X returns in Brazil after 40-day showdown with judge
- Call her savvy? Harris unleashes unconventional media blitz
- Lucian Freud 'masterpiece' fetches £13.9 million at London sale
- SoFi Stadium to hold next two CONCACAF Nations League finals
- McIlroy and DeChambeau set for PGA-LIV 'Showdown' in Vegas
Spotify swings to profit, paying subscribers rise
Music and podcast streaming giant Spotify reported Tuesday an increase in the number of paying subscribers and a rare but lower-than-expected operating profit for the first quarter.
The company posted a "new quarterly high" operating profit of 168 million euros ($179 million) -- a turnaround from a loss of 156 million euros over the same period last year.
But the figure was lower than its guidance of 180 million euros.
Spotify said the operating profit had been impacted by higher-than-expected payroll taxes which are tied to share-based compensations.
The audio group said it had 615 million active users at the end of the quarter, just short of its guidance of 618 million.
However, of those 239 million were paying subscribers, just in line with its projections.
Spotify said the business had "performed well" in the quarter, "led by healthy subscriber gains, improved monetization and record strength in profitability."
"Overall, we are encouraged by the strong start to the year," the company said in its earnings report.
Revenue grew 20 percent year-on-year to 3.6 billion euros, but was down one percent compared to the preceding quarter.
Spotify has invested heavily since its launch to fuel growth with expansions into new markets and, in later years, exclusive content such as podcasts.
Despite its success in the online music market, the company has never posted a full-year net profit and only occasionally quarterly profits.
On Tuesday it said it expected an operating profit of 250 million euros in the second quarter of the year.
In December, Spotify announced it would reduce its staff by around 17 percent in a bid to reduce costs, which followed earlier cuts announced in January and June of 2023.
In July 2023, the Swedish company, which is listed on the New York stock exchange, announced it was raising its prices for premium subscribers "across a number of markets around the world," following in the footsteps of similar moves by competing music services from Apple and Amazon.
F.Schneider--AMWN