INTERNATIONAL - Spotify Technology SA’s posted a surprise profit on Monday and topped Wall Street’s expectations for revenue as the music streaming company added slightly more subscribers than expected for its premium service.
The Swedish company, which has outstripped Apple Music in the race to dominate music streaming globally, said its number of premium subscribers had risen by 26 million in the past year to 113 million at the end of September.
That still leaves Spotify some way behind video streaming giant Netflix’s 158 million subscribers but was just above the 112.9 million expected by analysts, according to IBES data from Refinitiv.
It said it had also reduced artist marketing and research and development costs in the quarter, contributing to the surprise profit.
Shares in the company, which have underperformed Wall Street’s main indexes with a 6 percent gain since the start of this year, rose nearly 2 percent to $123 after the results release.