Hitmaker: Spotify features artists such as Adele and Taylor Swift (pictured)
Spotify has posted record profits as cost-cutting efforts appear to pay off.
The music streaming giant – which features artists such as Adele, Ariana Grande and Taylor Swift – unveiled profits of £145million in the first three months of this year.
This is the largest quarterly profit in the Swedish group’s 18-year history and follows the £134million loss it notched up in the same period of 2023.
Spotify has come under mounting pressure in the face of surging content costs, an advertising slowdown and intense competition.
But in a bid to turn its fortunes around, the group pushed ahead with a plan last year that saw it lay off over 2,000 staff.
The firm also raised prices for the first time in last year, charging £10.99 a month for its premium service, up from £9.99.
This followed similar moves by rivals such as Apple Music. And in a sign these efforts are finally paying off, Spotify said revenues hit £3.1billion in the last quarter, up by a fifth compared to last year.
The company also noted a 14 per cent increase in premium subscribers, with 239million paying to listen to music during the quarter. Total users reached 615million.
Spotify boss Daniel Ek said: ‘It is really a new Spotify you’re seeing, where we are being relentlessly resourceful in all of our costs.’
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