Spotify Technology SA (NYSE:SPOT) rose almost 7% amid reports it is preparing to hike its subscription prices across all major jurisdictions.
Citing sources, Bloomberg said the price increases will be between $1 and $2, starting in the UK, Australia and Pakistan, followed by the US later in the year.
If reports are accurate, it will mark the second set of price hikes for the Swedish music-streaming giant in as many years, having kept prices stagnant for a decade prior.
Spotify added audiobooks to its UK, US and Australian offerings in 2023; these as-yet-unconfirmed price hikes are reportedly being introduced to cover the added costs of the new service.
Audiobooks are due to be rolled out in Canada, Ireland, and New Zealand later this month.
Despite its dominance of the streaming sector, Spotify has yet to turn a yearly profit since going public in 2018.
In the 2023 financial year, Spotify's revenue was €13.25 billion (US$14.3 billion), but the company still reported a net loss of €532 million (US$575.6 million), which was 23.7% more than in 2022.
Spotify shares reacted positively to the Bloomberg report, adding 6.6% to $264.3 when markets opened on Wednesday. The group’s market capitalization is currently around $57 billion.