Spotify forecasts profit below estimates on higher taxes, shares sink

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Spotify forecast third-quarter profit below Street estimates on Tuesday as higher taxes related to employee salaries outweigh upbeat demand for its premium music-streaming plans.

The company’s shares, which have risen around 57% so far this year, fell nearly 9% in early trading.

Investors are closely monitoring the Swedish company’s profitability after price hikes, cost cuts and subscriber gains in recent years helped it achieve its first annual profit in 2024.

Spotify said it expects operating income of €485 million ($561.05 million) in the current…



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Spotify forecasts profit below estimates on higher taxes, shares sink



Spotify forecast third-quarter profit below Street estimates on Tuesday as higher taxes related to employee salaries outweigh upbeat demand for its premium music-streaming plans.

The company’s shares, which have risen around 57% so far this year, fell nearly 9% in early trading.

Investors are closely monitoring the Swedish company’s profitability after price hikes, cost cuts and subscriber gains in recent years helped it achieve its first annual profit in 2024.

Spotify said it expects operating income of €485 million ($561.05 million) in the current…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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