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The company that sells music on streaming, Spotify, reported Wednesday the fourth quarter results. Spotify made a profit of 442 million euros.
The Swedish-born company recorded a 30% increase in its turnover, which corresponds to the 1 500 million euros made at the end of last year . This growth has only been possible because the number of users has increased. In the accounts of 2018, Spotify closed the year with 96 million subscribers to the service, or $ 9 million more than the previous quarter and 36% more than the same period from the previous year.
The service paid by subscribers takes 90% of subscribers. their annual income, the rest being paid for the free service financed by advertising. Ads placed between the songs of the free service generated 175 million euros in the last quarter, an increase of 34% compared to 2017.
At the end of last year, the service had 207 million euros users, which revealed a monthly growth of 29% of this number. The 207 million subscribers exceeded the company's forecast of 199 to 206 million users worldwide. "We have been growing above expectations in most markets, especially since we have improved our ability to retain users." New users are also attracted by the promotions that the service usually makes, such as using three months for only one euro, while it usually costs seven euros.
In the last quarter of 2018, Spotify reached 13 new markets and expanded its presence to 78 countries. In the company's written statement, they reveal that the Latin American market and other emerging markets are growing strongly, which means that the company hopes to increase its subscribers but also their profits.
Spotify posted a profit of 94 million euros for the first time. Nevertheless, this profit could only be verified when the company reduced its operating expenses by 17% to 305 million euros. Thus, the company generated free cash flow in the last three months of the year of 84 million euros. In this way, the company that provides the service to several customers has managed to overcome losses of 596 million euros in the last quarter of 2017, thanks to a profit of 442 million euros received in 2018. [19659002] In 2018, the company recorded revenue of € 5,259 million, compared to only € 4,090 million in 2017. It also managed to reduce losses by 1,235 million from euros in 2017 to 78 million euros in 2018.
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