Spotify Technology SA (NYSE:SPOT) has reported a wider second-quarter loss as it incurred additional charges aimed at streamlining its operations and reducing its cost base, sending its shares sharply lower in Tuesday pre-market trading.
The results come a day after the Swedish-based music, podcast, and video streaming service increased the price of its subscription service for the first time in its history, saying the move will help it to continue to deliver value to fans and artists on the platform.
For the three months to June 30, 2023, Spotify reported a 27% rise in total monthly active users (MAUs) to 551 million. The number of premium subscribers grew by 17% to 220 million.
Total revenue for the quarter rose 11% year-over-year to €3.18 billion but it reported an adjusted operating loss of €112 million. Its net loss more than doubled to €302 million, or €1.55 per share, above the €0.66 expected by analysts.
The company has guided for 21 million net new MAUs and 4 million net new subscribers in Q3, with revenue expected to reach €3.3 billion. It has also guided investors to expect an operating loss of €45 million for the quarter.
Its shares were down 7.2% at $156.50 ahead of the market open.
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