Spotify forecasts profit above estimates as founder Daniel Ek moves to new role

Feb 10 (Reuters) - Spotify forecast first-quarter net supra Wall Street estimates connected Tuesday, arsenic the Swedish audio-streaming benefits from beardown idiosyncratic maturation and ​price hikes, sending its shares up astir 12% successful premarket trading.

The ‌results are the archetypal since co-CEOs Gustav Soderstrom and Alex Norstrom took the reins from laminitis Daniel ‌Ek, who became enforcement president successful January.

While terms increases successful respective markets and outgo cuts powered profits successful the December quarter, the company's gross maturation deed the slowest since its 2018 marketplace listing.

Spotify has rolled retired an AI-powered playlist that tin ⁠be generated with a elemental ‌prompt, invested successful video podcasts including done a Netflix woody and expanded beyond audiobooks with carnal books to ward disconnected contention ‍from Apple and Amazon's streaming services.

The institution forecast operating income of 660 cardinal euros ($786.13 million) successful the archetypal quarter, compared with analysts' mean estimation of 652.3 cardinal euros, according to ​data compiled by LSEG.

Its quarterly gross forecast of 4.5 cardinal euros was ‌slightly beneath the estimation of 4.57 cardinal euros. Fourth-quarter gross roseate 7% to 4.53 cardinal euros, successful enactment with estimates.

Spotify raised the terms of its monthly premium subscription program by $1 to $12.99 successful the U.S., Estonia and Latvia markets this year, pursuing a akin determination successful much than 150 markets successful 2025.

Its quarterly outlook for ⁠759 cardinal monthly progressive users was supra ​an estimation of 753 million, portion its prediction ​for a 3 cardinal summation successful premium subscribers to 293 cardinal was beneath estimates.

Premium subscribers grew 10% to 290 cardinal successful the ‍fourth quarter, versus an ⁠estimate of 290.9 million. Its MAU nett additions of 38 cardinal brought the full to 751 cardinal and exceeded expectations.

Gross nett jumped 10% from ⁠a twelvemonth earlier, acknowledgment to a 10% diminution successful operating expenses. Gross nett borderline accrued to ‌33.1% from 31.6% successful the anterior quarter.

($1 = 0.8396 euros)

(Reporting by Jaspreet ‌Singh successful Bengaluru; Editing by Pooja Desai)