Spotify Technology S.A. (NYSE: SPOT) on Thursday reported second quarter revenue and earnings that are in line with analysts’ estimates.
The music streaming company said revenue rose 26% to EUR 1,273 Million in the second quarter. Excluding the impact of Foreign exchange rate movement, the Company’s revenue grew at 34%.
Premium revenue accounted for most of the total revenue, reaching EUR 1,150 Million in Q2. Ad-Supported revenue rose 20% to EUR 123 Million in Q2, up 20% Y/Y. Average revenue per user (“ARPU”) fell 12% to EUR 4.89 in the second quarter.
Premium Subscribers jumped 40% to 83 Million as the Company offered promotions to attract more users. The Company provided limited offer of three-month subscription for only 99 cents. The plan used to charge USD 9.99 a month.
The Company now has 180 Million monthly active users (MAUs), up 30% from same period a year earlier.
Sportify shares rose 2.17% to USD 192.26 per share in the early trading on Thursday. This is the Company’s second earnings report since its IPO.
Spotify also said that the Company’s revenue growth was impacted by Europe's General Data Protection Regulation. "GDPR posed mostly a timing challenge for us, mostly with ad holding companies, exclusively in the free business. It was an opportunity for them to try to negotiate for a broader set of information sharing rights, and we weren't willing to give them," CFO Barry McCarthy explained on a call with media, according to CNBC.
For the third quarter in 2018, the Company expected total revenue to be between EUR 1.2 – EUR 1.4 Billion.