Spotify users jump 27% in Q4

Spotify has reported a 27% rise in its total monthly user base to 345 million.

The number of premium subscribers grew 24% year-on-year to 155 million in the quarter, exceeding the top end of the guidance range. 

Helping to boost numbers for the latest results was the surge in podcast listening on the streaming platform. The number of hours spent listening to podcasts doubled in Q4 thanks to new content from Michelle Obama and the Duke and Duchess of Sussex.

Daniel Ek, the founder and chief executive of Spotify, said in a letter to shareholders: “We are confident that podcast usage has been a factor in the accelerated net additions. We have increasing conviction in the causal relationship between growth in podcast consumption driving higher [value] and retention among our user base.”

The average revenue per user fell by 8% to $5.13 due to the discounted plans for new users.

The group made a loss of €125 million, compared to the €209 million loss it made in the year previously.

Total revenue was €2.2 million and grew 17% in Q4. Advertising income grew 29% year-on-year to €281m.

Shares in Spotify fell 8%.

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