Spotify in the black as millions sign up despite higher prices

Spotify has bounced back in the black as millions of new subscribers signed up.

The music streaming giant – which features artists such as Adele, Taylor Swift and Ariana Grande (pictured) – posted profits of £28m in the third quarter of the year.

It was the first quarterly profit the company has managed since 2021.

The music streaming giant – which features artists such as Adele, Taylor Swift and Ariana Grande (pictured) – posted profits of £28m in the third quarter of the year

The Stockholm-based firm, which reported a £199m loss for the same period last year, added 6m paying subscribers across the quarter – 2m more than expected.

That came despite the fact that Spotify raised its prices for the first time in the UK earlier this year. The company said it would charge £10.99 a month for its premium service, up from £9.99. This followed similar moves by rivals such as Apple Music.

The rise in subscriber numbers alongside higher prices helped send quarterly revenues up 11pc to £3bn.

It marked a return to form for Spotify and shares rose more than 10pc in New York. It has more than doubled in value so far this year.

Like other tech firms, Spotify shares tumbled last year as rising inflation and higher interest rates took their toll.

The company was also criticised for its hefty investment in podcasts, reportedly forking out as much as £15m for the Duke and Duchess of Sussex’s Archetypes series.

But the company seems to have turned its fortunes around after a cost-cutting mission, which saw it lay off around 800 people so far this year. And Spotify has now set its sights on expanding in new areas such as audiobooks.

Earlier this month, the firm added more than 150,000 titles to its platform, striking deals with all the major publishers.

Bosses said they expect to add a further 9m paying subscribers in the next quarter.

This post first appeared on Dailymail.co.uk