As part of its Q2 2018 fiscal announcement on July 26, Daniel Ek’s firm has just revealed that it ended the month of June with a global paying subscriber base of 83 million.
According to the release by Spotify, the quarter was largely in line with the potentials, with some metrics performing at the high end of Spotify’s guidance range.
Spotify finished the quarter with 180 million Monthly Active Users (“MAU”) and 83 million Premium Subscribers, up 30% and 40% respectively.
That was up by 8 million on the 75 million subscribers the company confirmed three months prior at the end of March (Q1) and up by 12 million on the 71 million subscribers it counted at the end of December.
In fiscal terms, Spotify turned over €1.273 billion in revenues in Q2 (the three months to end of June), up 26% year-on-year in real terms, and up 34% after adjusting for negative impact of currency exchange rates.
Operating losses in the quarter stood at €90 million, widening 14% on Q2 2017. However, this included a €30 million cash expense related to Spotify’s direct listing on the NYSE in April, as well as unexpectedly high payroll and stock options-related taxes.
In terms of net losses, Spotify saw a deficit of €394 million in Q2, taking its year-to-date net loss over €500 million.
In Q2, this was largely down to finance costs of €302 million, or more than €100 million a month. Gross margin was 25.8% in Q2, at the high end of Spotify’s guidance range of 24-26%.
Spotify has taken a big lead on Apple Music paid subscribers.