The Swedish music streaming company, Spotify, has announced the economic results for the third quarter of 2019 and as expected, they have been very good, since has exceeded the most optimistic growth expectations both from analysts and from the company itself, which has resulted in a 16% rise in the stock market.
As of September 30, 2019, Spotify had 113 million paying subscribers, an increase of 31% compared to the previous quarter. Free users, those who listen to advertising, have also increased by 29%, reaching 137 million. India, South Asia and Latin America with the countries where the company has experienced the greatest growth.
Since Spotify went public, the company has managed to increase its revenue every quarter putting the red numbers aside and starting to make a profit. According to the company, during the last fiscal quarter of 2019, it has entered 1.561 million euros through subscriptions, while the advertising generated through free accounts has amounted to 170 million euros.
In the statement sent to the shareholders where it has informed about the figures corresponding to the last quarter, Spotify affirms that it has obtained approximately twice as many subscribers every month as Spotify:
We continue to feel very good about our competitive position in the market. Regarding Apple, publicly available data shows that we are adding about twice as many subscribers per month as they are. Additionally, we believe that our monthly commitment is roughly twice as high and our account cancellation rate is in half.
The latest official figures from Apple Music show us how the streaming music service of Apple had 60 million subscribers at the end of June. Throughout this year, Spotify has maintained almost double the number of paid subscribers to Apple Music, an increase that is very difficult to maintain over time.
