Spotify reported a 15% year-over-year increase in Premium revenues, totaling €4.33 billion, or a 16% increase on a constant-currency basis. The service gained 9% in subscribers, bringing the total to approximately 574 million. Premium Average Revenue Per User (ARPU) rose to €4.89, a 7% increase, driven mainly by price increases.
In addition to subscription growth, ad-supported revenues increased by 1% year-over-year, or 3% in constant currency, bolstered by more music impressions sold, despite softness in pricing. Podcast sponsorship also improved, highlighting Spotify’s gradual advertising revenue recovery.
As of now, both Spotify and Apple (AAPL) hold a Zacks Rank of #3 (Hold), while Amazon (AMZN) is ranked #2 (Buy). The current competitive landscape shows Spotify focusing on subscriber and monetization growth versus Apple’s ecosystem-led approach and Amazon’s bundled services strategy.
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