Spotify Q3 Profit Jumps, Driven By Premium Revenue; Stock Climbs In Pre-market

(RTTNews) - Audio streaming service provider Spotify Technology S.A. (SPOT) Wednesday reported significantly higher profit for the third quarter driven by growth in premium revenue. Spotify shares were more than 7 percent up in pre-market.

Net profit for the third quarter increased to 300 million euros or 1.45 euros per share from 65 million euros or 0.33 euros per share in the same quarter a year ago.

Operating income was 454 million euros, up from 32 million euros last year.

Revenue for the quarter grew to 3.988 billion euros from 3.357 billion euros in the previous year. Premium revenue increased 21 percent year-over-year to 3.516 billion euros.

The company's monthly active users (MAUs) have increased 11 percent year-on-year to 640 million with 12 percent growth in premium subscribers to 252 million.

Spotify stock had closed at $419.39, up 2.24 percent on Tuesday. It has traded in the range of $170.62 - $419.72 in the last 1 year.