Spotify Shares Slip 10% After CEO Says Price Hikes Coming Next Year

By Denny Jacob

Spotify Technology SA shares slipped 10% to $87.17 a day after the company posted better-than-expected rises in revenue and users for the latest quarter but said price hikes will come next year.

Subscribers can expect increased prices for the audio streaming giant's service sometime in 2023, Chief Executive Daniel Ek told The Wall Street Journal. The company's premium service in the U.S. has cost $9.99 since Spotify was launched in the U.S. in 2011.

For its third quarter, Spotify reported 456 million monthly active users, up 20% from a year earlier and above the company's guidance. Paying subscribers, Spotify's most lucrative type of customer, climbed 13% to 195 million, also exceeding the company's expectations, thanks to promotions and household plans.

Spotify had a third-quarter loss of 194 million euros ($195.5 million), or 99 euro cents a share, compared with a loss of 80 million euros, or 41 euro cents a share, a year earlier.

For the fourth quarter, the company said it expects monthly active users of 479 million and premium subscribers of 202 million. It forecast revenue of 3.2 billion euros.

News Corp's Dow Jones & Co., publisher of The Wall Street Journal, has a content partnership with Spotify's Gimlet Media unit.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

October 26, 2022 12:45 ET (16:45 GMT)

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