Aug 4 : Spotify forecast third-quarter profit below Wall Street estimates on Tuesday, after the streaming giant reported slowing user growth in major markets of Europe and North America, driving shares around 5 per cent lower in premarket trading. The Swedish company has launched AI features like "Personal Podcasts" and new offerings such as "Reserved" to attract more user and fend off competition from rivals including YouTube and Netflix, and AI music startups like Udio and Suno.Spotify said it expects operating income of €670 million ($770.97 million) in the third quarter, below analysts' average estimates of €677.8 million, according to data compiled by Visible Alpha. In the second quarter, its operating income came in at €655 million, beating estimates of €639.2 million, driven by strong revenue growth and lower payroll taxes.
Such taxes, called social charges, are tied to the value of the company's share price. The company's shares have fallen about 16 per cent so far this year.Its quarterly revenue rose 14 per cent to €4.78 billion, slightly below LSEG-compiled estimates of €4.80 billion. The revenue forecast for third quarter of €5 billion was slightly above estimates of €4.93 billion.Its monthly active users forecast of 788 million was below Visible Alpha estimates of 793.6 million, while its outlook for a 5 million increase in premium subscribers to 305 million was largely inline with estimates.($1 = 0.8690 euros)
