Hitmaker: Spotify features artists including Adele and Taylor Swift (pictured)
Spotify has posted record profits as cost-cutting efforts appear to pay off.
The music streaming giant, which includes artists such as Adele, Ariana Grande and Taylor Swift, revealed profits of £145m in the first three months of this year.
It is the largest quarterly profit in the Swedish group’s 18-year history and follows the £134 million loss it recorded in the same period in 2023.
Spotify has come under increasing pressure amid rising content costs, a slowdown in advertising and intense competition.
But in a bid to turn around its fortunes, the group went ahead with a plan last year that saw it lay off more than 2,000 employees.
The company also raised prices for the first time last year, charging £10.99 a month for its premium service, up from £9.99.
This followed similar moves from rivals such as Apple Music. And in a sign that these efforts are finally paying off, Spotify said revenue hit £3.1 billion in the latest quarter, up a fifth from last year.
The company also saw a 14 percent increase in premium subscribers, with 239 million paying to listen to music during the quarter. Total users reached 615 million.
Spotify boss Daniel Ek said: “What you’re seeing is really a new Spotify, where we’re being relentlessly inventive in all our costs.”
Shares rose 14.1 percent.